Compounding quiz

300% profit in 6 months makes compounded how much % profit in a year?

  • 600%

  • 750%

  • 1000%

  • 1500%

Results are only viewable after voting.
I'm not good at math, I'll be the first to tell you. (i'm kind of extreme right brain) -- but I'm still a good trader. I just lay the somewhat philosophical foundation wisdom down...and the rest takes care of itself. ;)
(but the answer is 1,000%, correct...?)
 
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The question is worded in such a way as to be ambiguous. Is it 300% for the first 6 months, then another 300% for the second 6 months to complete the year. If so, none of these answers would be correct.
 
ktm said:
The question is worded in such a way as to be ambiguous. Is it 300% for the first 6 months, then another 300% for the second 6 months to complete the year. If so, none of these answers would be correct.
More...
You make 300% in the first 6 months, and continue with the same performance rate till year's end...
 
From something (x)
Compounded for 6 months (x^6)
You get 300% (x^6=4). Solve for x
Then extrapolate to 12 months.
 
I use this formula:
100 * (1 + p/100)^n - 100
where p is the percentage (here 300), and n=number of intervalls (here 2 because there are two 6-months in a year).
I'm getting 1500%.
 
botpro said:
I use this formula:
100 * (1 + p/100)^n - 100
where p is the percentage (here 300), and n=number of intervalls (here 2 because there are two 6-months in a year).
I'm getting 1500%.
More...

Wow. Don't know how you found it.
Is it yours ? If so, well done.
Looks like it works =P
 
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