Constantine L. answered • 03/22/14

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New to Wyzant
IPSA SCIENTIA POTESTAS EST

Great answers guys!

At the end, the number is 152.

Kindest regards,

Constantine

201-787-9853

Deloris H.

asked • 03/22/14I've tries multiplying then multipling the days time years but come up with wrong answer

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Constantine L. answered • 03/22/14

Tutor

New to Wyzant
IPSA SCIENTIA POTESTAS EST

Great answers guys!

At the end, the number is 152.

Kindest regards,

Constantine

201-787-9853

Jennifer E. answered • 03/22/14

Tutor

New to Wyzant
Mrs. Jennifer L.

Kay G. answered • 03/22/14

Tutor

4.9
(34)
~20 Years Accounting Tutoring Experience

There is no "day times years." Interest rates are quoted annually unless otherwise stated. So multiplying by "time" means either just multiplying by the years (no days involved), or multiplying by a proportion of a year if the term is less than a year. (Like x 7/12 means 7 months *out of* 12 months total, or x 60/360 means 60 days *out of* 360 days total. This gets the proportion of the year.)

Since you're just trying to do 2 multiplications and that's it, I'll assume for the moment you're doing simple interest, though you really need to state all the information.

Principle x rate x time

760 x .05 x 4

Note this gives you the interest. Make sure of what you're solving for. Are they asking for the interest, or the maturity value?

If it compounds annually, that would be M = P(1 + r)^{n}, but that isn't 2 multiplications like you describe.

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