How do you solve this financial math problem?
If Joelle invests $8000 into a retirement account with a 9% interest rate compounded monthly, how long will it take until this single payment has grown in her account to $16000? A=P(1+r/k)^kt <--- formula
Please help with financial maths problem?
A = P(1 + r/n)^nt P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. n = number of times the interest is compounded per year R 3,000.00 initial amount deposited R 3,236.59 balance after 9 months R 2,000.00 amount of second deposit R 5,236.59 balance immediately after second deposit R 5,942.80 balance 15 months after second deposit R 1,800.00 amount of third deposit R 7,742.80 balance after third deposit R 9,479.97 balance after 4 years (2 years after second deposit)
Financial math problem?
How would you solve this problem and can you explain it to me step by step. I know theres a formula but I cant remember it :( Sharon purchased a sprinkler system for $1,950 using a six-month deferred payment plan. The interest rate after the introductory period is 23.99%. No down payment is required, but there is a minimum monthly payment of $25. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?
Financial math problem - see if you can do it!?
The number of months in 25 years: 25 * 12 = 300 150,729.947/300 < Amonthly < 150,729.947(1 + 0.07/12)^300/300 $502.433 < Amonthly < $2,876.640 You probably have a formula that will compute it more exactly. Otherwise, calculus is required.
What is the best way to handle floating point problems with financial calculations in JavaScript?
Never use floating-point numbers for financial calculations. As you have observed, this leads to rounding problems because most decimal fractions like [math]0.1_{10} = 0.00011001100110011\dots_2[/math] have no exact finite representation in binary.Instead, just represent all monetary values using an integer number of the smallest relevant units of the currency, e.g., cents. You don’t need a special library for this. Plain JavaScript numbers are guaranteed to be able to exactly represent every integer between [math]-2^{53}[/math] and [math]2^{53}[/math], and [math]2^{53}[/math] cents is about nine quintillion dollars.(Don’t divide by 100 again and convert to dollars, like the example you gave. Just leave everything in cents.)
Financial math help?
Simple interest is FV = PV*I where I = interest for one year. So if you have money on deposit getting simple interest I per year for n years you have FV = sum(k = 1 to n){PVIi} + PV = PV*(1 + n*I) Now suppose you get an annual compound rate i. Then you future value, FV' is FV' = PV*(1 + i)^m where m = number of years invested. You now want FV = FV' letting n = m so PV*(1 + n*I) = PV*(1+i)^n --> 1+ n*I = (1 + i)^n solve for i 1+ i = (1 + n*I)^(1/n) --> i = (1 + n*I)^(1/n) - 1 i = (1 +5*0.06)^(1/5) -1 = 5.387% per annum compounded
Financial math question.?
You need $2000 to buy a new stereo for your car. If you have $800 to invest at 5% compounded annually, how long will you have to wait to buy the stereo? pv = 800 fv = 2000 i = 5% n = ?
How do I improve in Financial Maths?
Financial mathematics is a subject that encompasses a great deal at different levels of expertise. There is personal finance math and stock market forecasting using measures developed at Stanford and so on. To me, people sometimes get stressed out on mathematical applications. Sometimes just seeing mathematical problems in the context of history. Fibonacci Numbers used in analyzing stocks have been around for almost a thousand years.Fibonacci number - Wikipedia. Seeing a problem as something that can be researched amongst old texts can sometimes take away the stress of how to calculate possible stock prices, for example.
Financial math problem (compounding interest) which equation to use?
OK FV = PMT * [ ( ( 1 + i )^N - 1 ) / i ] FV = future value (maturity value) PMT = payment per period i = interest rate in percent per period N = number of periods So for you: FV = 765.13 * (1.01)^24 -1)/.01 FV = 765.13 * (1.269734649-1) /.01 FV = 765.13 * .269734649/.01 FV = 765.13 * 26.9734649 FV = 20,638.21
What kind of maths do financial analysts use?
Despite learning many complex equations and techniques to analyze financial information, most of us do a few basic things every day.We study and analyze relationships. Sometimes it is as simple as when something goes up, say bond prices, something goes down, like bond yields. Other times it is more complicated, as we want to know more about the correlation of the variables we are studying. Many of these relationships we just memorize but often we will use statistical techniques to get more precision, so studying statistical analysis and relationship analysis are really important.We calculate rates of return over various periods, adjust for taxes and then annualize the return. Simple math and easy to do backward-looking, but very hard to get the inputs right forward-looking. So be very familiar with percentages, decimals and fractions and then all the various forecasting methods and techniques.We analyze cash flows. Money comes in, money goes out. We study how much and why and what does it say about the underlying investment. Accounting is important, but the sections on cash flows are particularly important.Of course, depending on your specific role or function there are any number of other techniques or approaches you might use, but those three cover much of what financial analysts do.Good Luck!