New answers tagged financial-engineering
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I think the problem stems from the incorrectly combined application of the concepts of compound and simple interests.
Let's assume $M$ is the principal plus interest at the end of the 7th month, $M_3$ is the principal plus interest at the end of the 3rd month (what you are trying to calculate), and $M_0$ is the principal.
If $r$ represents a monthly ...
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