A Math Problem, tponetom

[tponetom]

A Math problem:


The original debt was ten cents. A dime. [[.10)
Six per cent interest, per year, was promised.
What is the accumulated interest for 72 years?


I come up with $ 12.00, plus /minus.


No jokes. I am bringing my ‘Will’ up to date.

[Maof]

i never was very good at math tom...lol

[coracle]

If it was simple interest I get 43 cents, but if it was compound interest I get $6.54 as the accumulated interest values. [[you have to add the original 10 cents on to each to get he final total values).

[ghettopalmetto]

A Math problem:


The original debt was ten cents. A dime. [[.10)
Six per cent interest, per year, was promised.
What is the accumulated interest for 72 years?


I come up with $ 12.00, plus /minus.


No jokes. I am bringing my ‘Will’ up to date.

If the interest is paid annually, your ending balance is:

[[$0.10)*[[1.06^72) = $6.64

[tponetom]

G P


Hooooray! I came up with 6.6377222. I was using my hand calculator punching .10 X 1.06, 72 times

[coracle]

The rule of 72 [[not to be confused with your 72 year investment). For any combination, if you divide 72 by the interest rate it gives you the number of years it takes to double your money at that interest rate [[approx). So 72/6 = 12 years; and there are six 12 year periods in 72 years.
So 0.10 * 2 * 2 * 2 * 2 * 2 * 2 = 6.40. Gets close enough.

[rb336]

is it simple or compounded interest?

[gazhekwe]

This makes my head spin. Or, why I am not a banker.