In Section 5.3, you are asked to find the rate in a sinking fund. Using the ordinary annuity formula results in an equation that is very difficult to solve. Instead, try graphing each side to the equation and locating the point of intersection.

# Category Archives: Finite Math

# Present Value…A Moving Target

In many investment problems, you are given an amount of money and asked what will it accumulate to in a certain amount of time at some interest rate. Essentially, these problems are asking you to find the future value of the amount of money. Depending on how that money accumulates, you might use one of several different formulas.

The MathFAQ below looks at how you calculate present value in the context of different type of interest.

# How Can You Use the Compound Interest Formula?

It is easy to confuse the processes for solving for the rate versus the number of years in the compound interest formula. The two MathFAQs compare the process of solving for the rate (using roots or powers) with solving for years (using logarithms)

# How Do You Solve for Different Values in the Compound Interest Formula?

Many problems require you to work with the compound interest formula.

Here are some FAQs that might help you to solve for various quantities in the formula.

# Using the Simplex Method to Solve A Standard Maximization Problem

The basic algorithm for solving a standard minimization problem is covered in Section 4.3. This process, called the Simplex Method, uses matrices and row operations to gauge whether an objective function is maximized at corner points.

In the example below, I write out a standard maximization problem from an application and then solve it with the Simplex Method.