Glory ,'Potential'
[NAFDA] Spike-centric discussion. Lusty, lewd (only occasionally crude), risque (and frisque), bawdy (Oh, lawdy!), flirty ('cuz we're purty), raunchy talk inside. Caveat lector.
So, in 2001 you pay $9,802; every year you get $551. In 2031 you get $10,000. So, total amount: 551x30+10,000.
Not (551x30+10,000) - 9,802? And that half year thing - is it an even six months?
ETA, also, is the interest compounding or are you taking it out each year?
vw, right off the top of my head, it looks like the 1st year is only .5 a year (august to february).
That's a good point.
Hil, I'm getting 5.576 % for the first one, and the back of the book says 5.62%.
Simple interest, so not compounding.
ETA, also, is the interest compounding or are you taking it out each year?
I think it's taking it out each year--$551 is what I have in my notes from when we talked about it in class.
And, looking at this, it might be the six month thing. I'm close, I'm just not exactly there.
I think you are thinking too much about Annual Yield - just take the interest earned each year and divide by the cost 551/9082=.056213=5.62%
What answer are you getting and how are you getting it, and what's the answer in the back of the book say?Hil? Are you reading my brain by mistake?
Nicole, insent.
-t, when I do that, I get 6.066%
Huh, you sure do. What did I do to get 5.62 like I just did?
I don't know! But do it again!