Friday, November 6, 2015

Friday 11/6

Int 1:
You have to solve two problems, using the compound interest equations:

A = P(1 + rn )nt

P = Principal (starting amount)
r = interest rate in decimal
n = # compounding per year
t = time in years

First question: You max out your credit card spending $1200.  If you have an interest rate of 19%, and do not pay anything, how much will you owe after 6 months?

Second Question.  You won $2,000,000 in the lottery.  You have to decide where to put your money.  Wells Fargo gives you 2% compounded monthly where as Chase gives you 3% compounded every two months.  Where should you go if you expect to keep your money there for 5 years?

No comments: