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I have an initial price (P0) of $4,5 and a final price of $16 (P1).

The exercise requires to find a function to get the amount of months needed to reach the $16 (non-accumulative).

n = quantity of months

So, y = f(x) =>

P0 * (1 + x/100) * n = P1

y = n = P1 / (P0 * (1 + x/100))

If x = 255,55%, the months = 1.

But If I apply 20%, the amount of months should be like 12,77 or so, but the function returns 2.96

Where am I failing?

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1 Answer 1

up vote 1 down vote accepted

Your equation should be $P_0*(1+nx/100)=P_1$ Your equation is multiplying the original balance by $n$, not just the interest.

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