The Deterministic Mathematical Model for Midyear of Savings with Compound Interest Rate
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Abstract
The objectives of this research are 1) to create a deterministic mathematical model for midyear of savings with compound interest rate and 2) to display the characteristic of graphs of the returns those are computed from the deterministic mathematical model for midyear of savings comparing with the mathematical model for savings at the beginning and at the end of the year. From the research results 1) the deterministic mathematical model for midyear of savings with compound interest rate consisting of the variables those are present value, compound interest rate per year, the number of times of compounding and the number of times for saving which are developed from the standard compounding interest model are obtained and checked the correctness by using mathematical induction in the proof and 2) the characteristic of graphs of the returns those are obtained by computing from setting the same initial conditions of variables into the deterministic mathematical model for midyear, beginning and at the end of the year of savings. In the graphs, the returns of the beginning of the year are greater than the returns of the midyear and the returns of the midyear are greater than the returns of the end of the year.
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References
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