0
Finishing capital = starting capital x (1 plus interest rate) to the power of the term.
EG 1000 units at 5% over 7 years = 1000 x (1.05 to the power 7)
Easiest way to do this is to use logarithms:
1000 x antilog (7 x log 1.05) = 1000 x antilog 0.1483251
= 1000 x 1.4071
= 1407.1 units
This compares with simple interest where finishing capital would be 1350 units.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is 'Annual Equivalent Rate'?
Interest payments can calculated annually, quarterly, monthly, daily or even continuously. To enable consumers to compare rates quoted over different periods, many authorities require financial institutions to calculate the total compound interest over a year. That is the AER.
What is a table that shows annual compound rates of growth between selected periods of time?
Growth triangle
Why present values are dependent upon interest rates?
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
What two factors are most important in determining the power of compound interest?
The interest rates paid on the deposited money and the number of years you leave the money in the bank.
Write a C program which will ask the operator to enter amount to be invested for the period of investment and the rate of interest for simple interest and compound interest calculation?
Or you could just do the same thing in a spreadsheet without having to pay commercial rates for the program to be written for you
What is 'Annual Equivalent Rate'?
Interest payments can calculated annually, quarterly, monthly, daily or even continuously. To enable consumers to compare rates quoted over different periods, many authorities require financial institutions to calculate the total compound interest over a year. That is the AER.
How do financial institutions calculate interest rates?
Financial institutions base their interest rates on fluctuation of today's market. If the market is doing well then interest rates are high. If the market is down, interest rates goes down along with it.
What are the interest rates for a student loan?
The interest rates for a student loan are typically fixed at the annual inflation rate. This is true of that of the UK. Higher rates are typical in other countries.
What is the annual fee for an amazon credit card?
There is no annual fee for an Amazon credit card, but interest rates can be quite high. Rewards are offered that do not offset the higher interest rate
What fees are associated with Tesco banking?
"The only fees associated with Tesco banking would be interest rates associated with any other banks. Usual rates would apply, example would be annual and fixed interest rates."
What is a table that shows annual compound rates of growth between selected periods of time?
Growth triangle
How do you calculate APR?
You calculate APR based on your credit score, loan size and term of loan. Typically the shorter the loan life the lower APR you will get . Annual Percentage Rate APR (Annual Percentage Rate) is a standardized term used to compare loans, mortgage loans and credit card rates. It is a compilation of the compound interest, finance charges and lender fees calculated annually. For more detailed information and to use an APR calculator visit the link in related links.
What type of interest rate can you expect from a high yield savings account?
Interest rates vary depending on the bank the savings account is in. For a high yield savings account, interest rates can be from 0.95-3.0% annual percentage yield.
What are CD interest rates and how can you tell which is the best one?
Interest rates for Certificates of Deposit (CDs) are the rate at which your term deposit gains interest. Usually the best one is the biggest, but watch out for banks that may compound the interest at different intervals.
Why present values are dependent upon interest rates?
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
Do quick loans have high interest rates?
The interest rates depend on the the amount of the loans and the amount of time you are given to repay the loan. There are some jurisdictions that limit the annual percentage rate, it all depends on where you get the loan from.
What has the author Jeffrey L Kunkel written?
Jeffrey L Kunkel has written: 'Effective annual interest rates earned by the OASI and DI Trust Funds, 1940-96' -- subject(s): Interest rates
