Challenge: Predicting Savings Growth
Task
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A financial advisor helps his clients predict their future savings based on monthly deposits and interest rates. You are given the savings growth function, modeled as a geometric series:
A=P(1+nrβ)ntWhere:
- A - total amount after interest;
- P - principle (Initial deposit);
- r - annual interest rate;
- n - number of times interest compounds annually;
- t - time in years.
- Calculate the total savings after 20 years, given the following:
- Initial deposit P=10000;
- Interest rate r=8% (0.08 as decimal);
- Compounded monthly n=12;
- Time 20 years t=20.
- Determine how much interest contributes to the total savings.
Solution
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SectionΒ 2. ChapterΒ 6
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Challenge: Predicting Savings Growth
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Task
Swipe to start coding
A financial advisor helps his clients predict their future savings based on monthly deposits and interest rates. You are given the savings growth function, modeled as a geometric series:
A=P(1+nrβ)ntWhere:
- A - total amount after interest;
- P - principle (Initial deposit);
- r - annual interest rate;
- n - number of times interest compounds annually;
- t - time in years.
- Calculate the total savings after 20 years, given the following:
- Initial deposit P=10000;
- Interest rate r=8% (0.08 as decimal);
- Compounded monthly n=12;
- Time 20 years t=20.
- Determine how much interest contributes to the total savings.
Solution
Everything was clear?
Thanks for your feedback!
SectionΒ 2. ChapterΒ 6
single