the thread about nothing...

Looks like a brother is about to defer these student loans, **** ain't moving at the speed I expected.

I'm still living though :hat
 
Assume you want to accumulate $125,000 for a long-range goal in 40 years. You have two choices. Plan A is an account with annual compounding and an APR of 5%. Plan B is an account with continuous compounding and an APR of 4.5%. How much of an investment does each plan require to reach your goal?

How the freak do I figure this out??

Looks like you have to find the present value using both APR percentages, so for the annual APR, you have to take the future value (125,000) and divide that by 1+apr(5%) and raise that to the 40th power. for the other one though i'mm not too sure because it says continuous. you could use the same formula but you can't raise 1+apr to the 40th power since it's annually. I don't know if i'm right though. this is my first semester taking finance so all of this stuff is still new to me. hope this helps man.
 
Last edited:
Assume you want to accumulate $125,000 for a long-range goal in 40 years. You have two choices. Plan A is an account with annual compounding and an APR of 5%. Plan B is an account with continuous compounding and an APR of 4.5%. How much of an investment does each plan require to reach your goal?
How the freak do I figure this out??

Plan A should be: F = 125000(1 + .05)^40
idk about plan b.
 
700
 
Spitta ft Trademark da skydiver and young roddy - No Sleep.. is too dope
 

U must want cobra commander to be on that ***....

No music b.
 
Last edited:

U must want cobra commander to be on that ***....

Get outta here dog. I've never seen a middle aged person act so child like and over something so trivial. Go sit indian style in the corner of your hut man.
 
Thank god for this NT thread yall make my day go by fast good looking out fam
nthat.gif
 
Back
Top Bottom