For you Math guys...

[Flipx99 5,000+ posts]

Simple reasoning is beyond me.

Try reading Bernanke's book on inflation targeting...sure beats the hell out a comic book...

 

[sumone 10+ year member]

My take....

5000 * .12 * .3 = tax for first year

5000 * .12 * .3 * 1.12 = tax for second year (equals 120%)

therefore, for 46 years, tax is

5000 * .12 * .3 * 1.12^(46-1)

total value is

5000 * 1.12^46

--------

total - tax =

(5000 * 1.12^46) - (5000 * .12 * .3 * 1.12 ^(46-1))

5000*1.12^46 - 180*1.12^45

1.12^45 (5000*1.12 - 180)

= $888,812.82

??

 

[DIPayton 10+ year member]

It's funy but I think I figured out the 2nd question on my own and I can't really explain it. Just figured it out from looking back at old questions.

I came up with an answer of 30,374.11

formula = y=5000(1.04)^46 1.04 is the difference between year 1 value and original value... I took year 1 value and divided by original value. That gave me 1.04.

why this makes sense? it probably doesn't but in previous work dealing with other situations and values, that's how we learned to figure out these kinds of questions. Handing it in soon. I'll be sure to post the real answer for you guys haha.

 

[Raven 10+ year member]

Good shit.
How bout...

return 0.7 * (5000 * pow(1.12, 46))

Showoff. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif