How much would $500 invested at 9% interest compounded annually be worth after 4 years? 705.79
If compounded and assuming the amount was 3180 dollars, it would be 784 dollars.
The rate is 15.56%. The amount invested is irrelevant in this calculation.
With compound interest - the balance after 7 years would be 26336.18
At 4% annual interest compounded monthly, it's 96 periods of 1/3% each.300 x (1.00333...)96 = 412.92 (rounded)
125 x (1.08)^14 = 367.15 If 125 is in cents, then to the nearest cent it is 367 If 125 is in dollars, then to the nearest cent it is as above, namely 367.15
Inserting values into the formula for compound interest, you get:4100 * (1 + 3.75/100) to the power 6.
7% compound interest means that the amount of money increases, every year, by a factor of 1.07. After 4 years, you have 300 x 1.07^4.
Simple interest of £3000 over 5 years: 3000*0.035*5 = £525 Compounded interest of £3000 over 5 years: 3000*(1.035)^5 -3000 = £563.06 rounded to the nearest penny
That depends on whether you are getting 5% simple interest, or compound interest, and how often it is compounded. Simple interest is very easy to calculate; you just multiply. $500 at 5% earns 5% of $500 every year, which is $25, so in 20 years the interest earned is 20 x $25 or $500, for a total of $1,000. But if you put the money in a savings account in a bank, you get compound interest. It can be compounded annually, semi-annually, quarterly, monthly, or daily. The more often it is compounded, the more you earn. Nowadays you can get daily interest, but that is kind of complicated because it depends on whether you figure the interest for every single day, 365 days a year and 366 in a leap year, or the traditional banking custom of 360 days a year. For example, if you compound annually, every year your balance is multiplied by 1.05, so after 20 years you would have 500 x 1.0520, which is $1.326.65 to the nearest cent.
Unless I miss my guess, this certainly sounds like a test question or a homework assignment to me. If that's true, then it has no place here. This site doesn't do your homework for you. That would be mean and cruel,. since it would steal a chance to learn something from you.
value = Amount × (1 + APR/100)^years → value = 500 × (1 + 7/100)^4 = 500 × 1.07^4 ≈ 655.40
Rounded to the nearest cent, $15000 x 1.0415 = $27014.15
First include a unit of currency. I will use pounds, but if the answer is in dollars, simply replace the sign at the front of this sum to a dollar sign. The sum you are looking for is: Â£120000 x 1.0410 Rounded to the nearest penny (or cent, as appropriate), this is equal to Â£177629.31.
120 x (1.0621). You need a calculator with logarithms to solve this quickly. Take the log of 1.06, multiply that by 21 then take the antilog. The answer should be close to 3.4 I have 3.995636 which would give 407.95 to the nearest cent. Later: Sorry, this is based on annual compounding. For monthly the equation is 120 x (1.005252). You're on your own, I'm afraid! * * * * * The second part of the above answer is correct if this is purely a mathematical exercise. However, 6% compounded monthly is an annual interest rate of approx 101.2%. If you know anyone who gives even a tenth of that rate I would be interested to know! What happens, in real life, is that the financial company advertises the annual equivalent rate of their monthly rate. So, a 6% rate, compounded monthly, is really 0.487% monthly. This is because 0.487% compounded 12 times is 1.0048712 = 1.06, or 6% per annum. Then the real life problem reduces to 6% per annum for 21 years, which is 120*(1.06)21 = 407.95 - as in part 1 of the above answer. * * * * * The last paragraph above is incorrect. As was stated in the first answer, that would be for annual compounding. To calculate 6% per annum (which is what we usually mean by interest rates) compounded monthly, you first convert the interest rate to a monthly rate by dividing by 12, and that of course is half a percent per month, so every month the balance is multiplied by 1.005. So the answer of 120 x (1.005252) given there is correct. On the scientific calculator on my computer, I get $421.72.
Assuming that this rate is for compound interest per year, then the formula for working out the rate is 150 x (1.09 ^ 3). Assuming this rate is in pounds, rounded to two decimal places, rounded to the nearest penny this is equal to Â£194.25. If this rate is in dollars, merely replace the pound sign with a dollar sign.
(5.1 x 4.25)/4 = 5.42