Quick questions on Annuity investments and savings plans: VCE General Mathematics Unit 3 Recursion and financial modelling

Q: What is wrong period rate?

With monthly compounding divide the annual rate by 12 and set N to the number of months, not years.

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is mismatched sign in the solver?

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Payments into the investment and the receivable future value must have opposite signs, or the solver returns a nonsensical result.

What is wrong period rate?

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With monthly compounding divide the annual rate by

12

and set

N

to the number of months, not years.

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