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Math/Finance Majors

  1. Mar 19, 2008 #1
    Are there any Math/Finance Majors in here? I am currently a Math major, but I am also thinking about doing a double-major with Finance. I start this summer, so I still have time.
     
  2. jcsd
  3. Sep 30, 2008 #2
    Hi, I'm new to this site and may be in the wrong place. If so, kindly direct me to the right place.
    I wold like to solve the following question:
    If the total interest earned on an investment at 8.2% compounded semiannually for 8.5 years was $1,175.98, what was the original investment?
    I would like to know what formula(s) to use.
    Thank you in advance.
    Makman
     
  4. Oct 2, 2008 #3
    You have to use the formula

    P=A(1+r/m)^-(m*t)

    A is you actual ammount
    r is your rate
    m is your compound, in your case m will be 2
    t is the time in years

    Remember that the formula has a negative exponent!
     
  5. Oct 2, 2008 #4
    Thank you!
    Yes, I worked it out. $1,200.

    Much appreciated.
     
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