someone222
New member
Option 1: 5.4%p.a. compounded with no management fees
Option 2: 5.6% p.a. counpounded annually with management fee of $10 a month (deducted from the account balance at the end of the investment period).
These investments last 10 years each.
ok i am required to come up with 2 ways to find out what the principle would be if the overall amount made is the same for both the options. I have done the obvious one which is replace the overall amount of both options with the same amount and use algebra to find out the principle, but i dont know what to do with my second calculation.
can you please help me?
Option 2: 5.6% p.a. counpounded annually with management fee of $10 a month (deducted from the account balance at the end of the investment period).
These investments last 10 years each.
ok i am required to come up with 2 ways to find out what the principle would be if the overall amount made is the same for both the options. I have done the obvious one which is replace the overall amount of both options with the same amount and use algebra to find out the principle, but i dont know what to do with my second calculation.
can you please help me?