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How do I do this compound interest calculation?
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<blockquote data-quote="someone222" data-source="post: 2098741" data-attributes="member: 750073"><p>Option 1: 5.4%p.a. compounded with no management fees</p><p>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).</p><p>These investments last 10 years each.</p><p></p><p>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.</p><p>can you please help me?</p></blockquote><p></p>
[QUOTE="someone222, post: 2098741, member: 750073"] 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? [/QUOTE]
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