Using the compound interest formula which states A = P (1 + r/n)nt. We get the following result:
Therefore you earn approximately $4558.00 on a CD yielding a 9.5% interest rate for 4 years.
$973.44
900*(1+4/100)2 = 900*(1.04)2 = 973.44
At simple interest, it would be $3.88 (6 cents per year for 48 years = 2.88). At compound interest, credited annually, it would be $16.39 (rounded). At compound interest, credited quarterly, it would be $17.44 (rounded). Compounding means that once credited, the interest becomes part of the principal for the next interest period.
60000 x (1.12)2 = 75264
Assuming it is 2.05 percentper annum, then 2.05% of the amount that you deposit (or 2.05% of the average amount of your deposit).Assuming it is 2.05 percentper annum, then 2.05% of the amount that you deposit (or 2.05% of the average amount of your deposit).Assuming it is 2.05 percentper annum, then 2.05% of the amount that you deposit (or 2.05% of the average amount of your deposit).Assuming it is 2.05 percentper annum, then 2.05% of the amount that you deposit (or 2.05% of the average amount of your deposit).
$11,573.02 if you deposit at the beginning of the quarter or $11,444.27 if you deposit at the end of the quarter
$16,105.10 if compounded yearly, $16,288.95 if compounded semi-annually, $16,386.16 if compounded quarterly, $16,453.09 if compounded monthly, and $16,486.08 if compounded daily.
He should deposit 17017.82
This is a term used while understanding the interest calculation for deposits. Compounded quarterly means - the interest would be compounded every quarter. Let us say you deposit $1000 in a bank @ 10% interest per year. One year = 4 quarters At the end of the 1st quarter: principal = 1000, Interest = 25 => Value of your investment at the end of the 1st qtr = $1025 At the end of the 2nd quarter: principal = 1025, Interest = 25.625 => Value of your investment at the end of the 1st qtr = $1050.625 If you see here, the interest earned here is 25.625 whereas the interest earned in the previous quarter was only $25. This is because for calculation of interest for the 2nd quarter, the interest earned in the first quarter would be added to the principal. Shorter the compounding interval more the interest earned.
Although Microsoft excel does not include a function for determining compound interest , you can use following formula for this calculation.=PV*(1+r)^NWhere PV = Present Valuer = Interest RateN = No of investment period.E.g1000 is deposit amount at 10% interest for 5 years, then formula is=1000*(1+0.10)^5The answer will be 1,610.51
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It will be 726.
That depends on whether it's simple interest or compound interest.If compound, then it also depends on how often interest is compounded.Examples:$1,200 at 4% simple interest for 30 years adds up to $2,640.$1,200 at 4% interest compounded quarterly for 30 years adds up to $3,960.46.You can see that it does make a difference.
Yes & No. Some Banks usually pay interest that can be compounded every quarter on most fixed deposit plans. But, this is not applicable to all banks. Most banks still pay only simple interest on all deposit schemes.
Yes & No. Some Banks usually pay interest that can be compounded every quarter on most fixed deposit plans. But, this is not applicable to all banks. Most banks still pay only simple interest on all deposit schemes.
320.51 A+
Deposit 4776.06 The frequency of compounding does not matter since the annual interest rate is given.