The annual equivalent rate is 15.5625%. The amount invested is irrelevant to calculation of the equivalent rate.
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.
rose by 1 percent
rose by 1 percent
rose by 1 percent
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 highest interest rates for a one year investment depend upon the amount of money invested and the risk factor involved. If one invests $2,500 with Discover Bank and purchases a CD for one year, the interest rate is .85%.
2500
2500