Principal: $1400, Rate: 16%, Compounded: Quarterly, Time: 6 years. The formula: MV=P(1 + r/n) nt r = yearly interest rate n = number of periods the interest is compounded per year t = term of the loan in years Thanks for the help! spiritsoars54 Posts: 1 Joined: Sun Feb 15, 2009 2:36 am Sponsor Re: Maturity value:$1400 principal, 16% rate, comp. quarterly

spiritsoars54 wrote:Principal: \$1400, Rate: 16%, Compounded: Quarterly, Time: 6 years.

The formula: MV=P(1 + r/n) nt
r = yearly interest rate
n = number of periods the interest is compounded per year
t = term of the loan in years

I think the equation should be:

$MV \,=\, P(1 \,+\, \frac{r}{n})^{nt}$

{ also written as MV = P(1 + r/n)^(nt) }

If so, just plug in the values given, bearing in mind that 16% = $\frac{16}{100}$, and quarterly means 4 times a year.

The $nt$ part is the exponent (or power), which in this case means multiply whatever is in the parentheses (round brackets) by itself $nt$ times.

The caret symbol, ^, can be used to denote the exponent when proper formatting isn't available, e.g. x² can be written as x^2.

DAiv
DAiv

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