The annual equivalent rate is 15.5625%. The amount invested is irrelevant to calculation of the equivalent rate.
To calculate the interest earned in one year, you can use the formula: Interest = Principal × Rate × Time. Here, the Principal is the initial amount of money invested or borrowed, the Rate is the annual interest rate (expressed as a decimal), and Time is the duration in years (which is 1 for one year). For example, if you have a principal of $1,000 and an annual interest rate of 5%, the interest earned in one year would be $1,000 × 0.05 × 1 = $50.
Let P be the amount of invested money. Then, .08P = 336 P = 336/.08 = 4,200
4000 x (1.0610) = $7163.39
1/12th of 5% because there are 12 months in a year. ANSWER:- 1/60th per cent, which is the same as 0.01667 of the amount invested.
He invested 5,000 at each rate. Let x represent the amount invested at 7% and y represent the amount invested at 10%. His total interest is therefore x+y. From the problem, we have the following equations (a and b): (a) .07x+.1y=.1(x+y)-150 AND (b) x=y Plugging (b) into (a), we get: .07x+.1x=.1(x+x)-150 .17x=.2x-150 .03x=150 x=150/.03=5000 Because x=y, y=5000 as well.
The maturity amount for a fixed deposit or investment can be calculated using the formula: [ A = P(1 + r/n)^{nt} ] where ( A ) is the maturity amount, ( P ) is the principal amount (initial investment), ( r ) is the annual interest rate (in decimal), ( n ) is the number of times interest is compounded per year, and ( t ) is the number of years the money is invested or borrowed. For simple interest, the formula is ( A = P(1 + rt) ).
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To calculate the annual interest rate of 18 percent per month, you first need to multiply the monthly rate by 12 to get the annual rate. So, 18 percent per month would be 18% x 12 = 216% per year. This means that the interest accrued annually would be 216% of the initial amount borrowed or invested.
The interest on $250,000 per year depends on the interest rate applied. For example, if the interest rate is 5%, the annual interest would be $12,500. To calculate the interest for a different rate, simply multiply the principal amount ($250,000) by the interest rate expressed as a decimal.