- #1

Square1

- 143

- 1

I am looking for a formula what will give me the number of terms that will be compounded in a given length of time.

Say:

Principle = 1000

i = 10%

If we are including the principle as a term, for the end of the first period T1 we have the original principle accruing interest. At the end of the second period T2, now we have two terms accruing interest (the principle and the previous interest earned). At the end of the third period T3 we have four terms accruing interest. At the end of T4, I

*think*we got nine terms accruing interest. T1 = 1, T2 = 2, T3 = 4, T4 = 9. Similarily, if we

*exclude*the principle term, the pattern is like this: T1 = 0, T2 = 1, T3 = 3, T4 = 8.

So, how would you go about getting a formula for the number of terms? Does anyone know what it is?

Wow it's been perhaps 3 years or so since I've last posted here. Oh the memories coming back :) Love you all :)