Compound Interest Questions

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Running head: COMPOUND INTEREST

Compound Interest
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COMPOUND INTEREST

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Business Math Homework

Q1: Monthly compounded rate of return, R is as follows:
Let initial investment be V and monthly return be R%.
Number of months = 8 x 12 = 96
Then,
V x (1 + R)96 = 3 x V
(1 + R)96 = 3
Taking 96th root,
1 + R = 1.0115
R = 0.0115
R = 1.15%

Q2: Equivalence annual return is computed as fo...

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