Compound Interest

Sineadp
Sineadp Registered Posts: 67
Does anyone know how to work out the Compound Interest on this question? I know the formula but don't understand how to work it out.

Thank you

Comments

  • aat2200
    aat2200 Registered Posts: 23
    I had this problem and i've figured it out. It's the way you input it into a calculator, you need to use a scientific calculator. So here's how to type it (using an example of 1.5% interest and normal days of 30, with 23 discount days)

    Type this into a scientific calculator and press = whenever i type = (1.5 / 98.5 ) = X +1 = X to the power of (365/23) = X - 1 x 100.

    The answer you should get is 27.11% rounded.

    hope that made sense to you.

    Let me know if not but remember BODMAS i.e. remember when to subtract and add.
  • Sineadp
    Sineadp Registered Posts: 67
    Thank you
  • Bran278
    Bran278 ManchesterRegistered Posts: 36
    aat2200 said:

    I had this problem and i've figured it out. It's the way you input it into a calculator, you need to use a scientific calculator. So here's how to type it (using an example of 1.5% interest and normal days of 30, with 23 discount days)

    Type this into a scientific calculator and press = whenever i type = (1.5 / 98.5 ) = X +1 = X to the power of (365/23) = X - 1 x 100.

    The answer you should get is 27.11% rounded.

    hope that made sense to you.

    Let me know if not but remember BODMAS i.e. remember when to subtract and add.

    Jees, no matter how I enter that calculation, I cannot get it to 27.11% for the life of me! Can you help please?? If you can break that down any further for silly people like me, I'd really appreciate it as it is driving me crazy!!

    TIA :)
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