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Mr Dupont invests $100 and gets 100% profit/month. After 6 months, he gets 600%. The $100 gets doubled every month so it's $6400 after 6 months while if it's 600%, he gets $600. Which one is correct if he doesn't withdraw during 6 months? How much does he get after 6 months?
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I see. I saw education and I thought it was for homeworks like on some QA sites. Parents can help children with their homeworks by explaining to them. You could have at least explained something to me. I'm here for help, not necessarily looking for an exact answer. You could have explained the difference between something doubled and a percentage. So I can figure out the answer by myself. But I guess my math problem is not important to you because you are not at school anymore and no one is investing. Sorry for not being british. Bye.
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The answer will depend upon whether the interest is compounded or not.
If it is not compounded then the capital $100 is accruing interest at the rate of $100 per month - total to come at the end of 6 months = $600 interest = 600%
If it is compounded then after 1 month $100 interest is capitalised so that the capital is $200 which is then invested and therefore earns $200 next month. After 6 months there will be $6400
Therefore both answers could be correct depending upon whether the interest is compounded or not.
If it is not compounded then the capital $100 is accruing interest at the rate of $100 per month - total to come at the end of 6 months = $600 interest = 600%
If it is compounded then after 1 month $100 interest is capitalised so that the capital is $200 which is then invested and therefore earns $200 next month. After 6 months there will be $6400
Therefore both answers could be correct depending upon whether the interest is compounded or not.
Your question is a little unclear, your first two sentences define two totally different interest rates/methods. Then it depends on how the interest is calculated by the lender. I also assume you mean compound interest.
If it is calculated as compound interest on a monthly basis then you are correct in saying it doubles every month and he will have $6,400.
But if it is calculated on a six-monthly basis at 600% per half-year then he will get $600.
(Compound interest can be calculated daily(rare), monthly, half-yearly, yearly, etc. - it all depends on the stated investment terms)
If it is calculated as compound interest on a monthly basis then you are correct in saying it doubles every month and he will have $6,400.
But if it is calculated on a six-monthly basis at 600% per half-year then he will get $600.
(Compound interest can be calculated daily(rare), monthly, half-yearly, yearly, etc. - it all depends on the stated investment terms)
Another pair of answers might be that he would get either $100+$200+$300+$400+$500+$600 (based on increasing % return on the initial investment, and the idea that in the sixth month he gets a %600 percent return on the investment at the start of the month), = $2200 total (including the initial $100). Or you'd get 100*2*3*4*5*6*7 = $504,000 (similar idea, but compounded).
The question seems very ambiguously worded! The most likely answer based on usual ideas of high-school maths is $6400, but I'd want to see the original question and context in full.
The question seems very ambiguously worded! The most likely answer based on usual ideas of high-school maths is $6400, but I'd want to see the original question and context in full.
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