Best Answer

b * 1.03 4*12 = 600

b = 600 / 1.0348

b ≈ 600 / 7.977

b ≈ 145.20

Q: How much money would have to be deposited now at 3 percent interest compounded monthly to accumulate to 600 in 4 years?

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14.651

It is 0.833... recurring % if the interest is simple, or compounded annually. If compounded monthly, it is approx 0.797 %

If not compounded monthly, a monthly interest rate is simply 1/12 of the annual rate. Things do get complicated, though if the interest is compounded monthly. An annual interest rate of R% is equivalent to a monthly rate of 100*[(1 + R/100)^(1/12) - 1] %

$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.

If you mean 5.8% annual interest rate compounded monthly, then (1000*.058)/12 = 4.83

Related questions

"How much money should be deposited at 4.5 percent interest compounded monthly for 3 years?"Incomplete question.... to do what?

The amount required is 7641.49

14.651

It is 0.833... recurring % if the interest is simple, or compounded annually. If compounded monthly, it is approx 0.797 %

If not compounded monthly, a monthly interest rate is simply 1/12 of the annual rate. Things do get complicated, though if the interest is compounded monthly. An annual interest rate of R% is equivalent to a monthly rate of 100*[(1 + R/100)^(1/12) - 1] %

If you need a monthly income then obviously a monthly income is better. If the monthly interest is not withdrawn then it makes no difference because the annual interest rate is usually equal to the compounded monthly rate.

$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.

On monthly compounding, the monthly rate is one twelfth of the annual rate. Example if it is 6% annual, compounded monthly, that is 0.5% per month.

$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.

If you mean 5.8% annual interest rate compounded monthly, then (1000*.058)/12 = 4.83

Compounded annually: 2552.56 Compounded monthly: 2566.72

At 8% per month, compounded, it will take just 1.2 years. However, with monthly interest such that its annual compounded equivalent is 8% (roughly 0.64% each month), it will take 14.27 years.