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How much would 120 invested at 6 percent interest compounded monthly be worth after 21 years Round your answer to the nearest cent?
Wiki User
∙ 11y ago
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!
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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.
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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.
Wiki User
∙ 11y ago
Fahima Ahmed
Fahima Ahmed
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What is Principal of 4100 is invested 3.75 interest compounded annually. How much will the investment be worth after 6 years Use the calculator provided and round your answer to the nearest dollar.?
Inserting values into the formula for compound interest, you get:4100 * (1 + 3.75/100) to the power 6.
How much would 300 invested at 7 interest compounded continuously be worth after 4 years Round your answer to the nearest cent. Do not include units in your answer.?
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How much would 200 invested at 4 percent interest compounded monthly be worth after 8 years rounded to the nearest cent?
1 month = (200/100)*4=208 2 month = (208/100)*4= 216,32 3 month = (216.32/100)*4 = 224.973 4 month = (224.973/100)*4 = 233.972 and so on It will be 8634.368 after 8 years * * * * * Well, it depends on whether this is a mathematical exercise or a real life question. If a mathematical question, the above answer is correct. However, according to this calculation, the annual equivalent interest rate is approx 60.1 percent. I cannot imagine any investment paying that sort of interest every year over an eight year period. What happens in real life is that the investment company quotes you the annual equivalent rate. So a 0.3274% monthly rate, compounded monthly over a 12 month period would be worth 4% per annum. So then the question simplifies to 4% annual equivalent interest for 8 years. Final value = 200*(1.04)8 = 273.71. Why 0.2374%? 1.041/12 (the twelfth root of 1.04) is 1.003274
120000 invested for 10 years at 4 percent compounded annually?
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: £120000 x 1.0410 Rounded to the nearest penny (or cent, as appropriate), this is equal to £177629.31.
What is 15000 compounded annually at 4 percent for 15 years?
Rounded to the nearest cent, $15000 x 1.0415 = $27014.15
How much would 500 invested at 4 percent interest compounded monthly be worth after 5 years. round your answer to the nearest cent do not include units in your answer?
610.5
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187.32
How much would 300 invested at 4 percent interest compounded monthly be worth after 8 years round to the nearest cent.?
At 4% annual interest compounded monthly, it's 96 periods of 1/3% each.300 x (1.00333...)96 = 412.92 (rounded)
How much would 140 invested at 6 percent interest compounded annually be worth after 15 years Round your answer to the nearest cent?
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332.01
What would be the amount of compound interest on 8000 invested for one year at 6 percent compounded quarterly round your answer to the nearest dollar?
$491
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£374.51
How much would 500 invested at 5 percent interest compounded annually be worth after 10 years. round your answer to nearest cent do not include units in your answer?
814.45
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What is the interest earned on 3180 if it is invested at 6.5 percent for 3½ years rounded to the nearest dollar?
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The rate is 15.56%. The amount invested is irrelevant in this calculation.
If 20000 is invested in a savings account offering 3.5 per year compounded continuously how fast is the balance growing after 7 years (Round your answer to the nearest cent.)?
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