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Mr Desai has decided to deposit Rs 100000 in the bank annually If the bank has a policy of continuous compounding and the prevailing interest rate is 11.5 percent how much would his deposit grow upto?
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∙ 14y ago
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∙ 14y ago
Mohd Anas
Atanu Mondal
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How do you converts interest rate from compounding quarterly to compound annually?
Interest of r% per quarter is equivalent to {(1+r/100)4 - 1} percent annually.
How much would Kendra have in her account after three years if she started with 500 and earned 2 percent interest compounding annually?
$530.60
How much interest will be earned in an account into which 1000 is deposited for one year with continuous compounding at a 13 percent rate?
The "13 percent rate" is the equivalent annual rate. So the interest will be 130.
What is better for the consumer simple interest or compounded daily?
I'm thinking of bonds when answering this question. The more frequent the compounding the better it will be for the lender. The less frequent the compounding the better it will be for the borrower. Lets use this example: Interest = 10% Principle = $1000 Compounding A = Annually Compounding B = Quarterly Time period = 2 years A) At the end of the first year $100 in interest would have been made making the balance $1100. At the end of the second year $110 would be earned because of compounding and the balance would be $1210. B) At the end of the first year $103.81 in interest would have been earned with a ending balance of $1103.81. At the end of the second year the interest earned would be $114.59 and the ending balance would be $1218.40. What I showed here is that if you are the one receiving the interest you would prefer daily compounding. When you're paying out interest you would prefer simple interest.
What is the process of earning interest on interest that you've already earned?
compounding
X deposits Rs 100000 in the bank annually If the bank has a policy of continuous compounding and the prevailing interest rate is 11.5 percent how much would his deposit grow upto in 2years?
100000
What does continuous compounding mean?
Continuous compounding is the process of calculating interest and adding it to existing principal and interest at infinitely short time intervals. When interest is added to the principal, compound interest arise.
How do you converts interest rate from compounding quarterly to compound annually?
Interest of r% per quarter is equivalent to {(1+r/100)4 - 1} percent annually.
What is the continuous compounding rate equivalent to an effective interest rate of 18 percent?
2
Where interest is compounded continuously?
I think most banks use daily compounding, but you could use the continuous compounding to approximate daily compounding and be off by less than 0.2%
Where is continuously compounded interest used?
I think most banks use daily compounding, but you could use the continuous compounding to approximate daily compounding and be off by less than 0.2%
How long will it take to double your money at 8 percent interest rate and continuous compounding?
Nine years at 8%
What is the best definition of compounding interest-?
Interest paid on interest previously received is the best definition of compounding interest.
How much would Kendra have in her account after three years if she started with 500 and earned 2 percent interest compounding annually?
$530.60
What is best definition of compounding interest?
Interest paid on interest previously received is the best definition of compounding interest.
What is the interest on 1200 invested for 2 years in an account that earns 5 percent interest per year?
The answer, assuming compounding once per year and using generic monetary units (MUs), is MU123. In the first year, MU1,200 earning 5% generates MU60 of interest. The MU60 earned the first year is added to the original MU1,200, allowing us to earn interest on MU1,260 in the second year. MU1,260 earning 5% generates MU63. So, MU60 + MU63 is equal to MU123. The answers will be different assuming different compounding periods as follows: Compounding Period Two Years of Interest No compounding MU120.00 Yearly compounding MU123.00 Six-month compounding MU124.58 Quarterly compounding MU125.38 Monthly compounding MU125.93 Daily compounding MU126.20 Continuous compounding MU126.21
How much interest will be earned in an account into which 1000 is deposited for one year with continuous compounding at a 13 percent rate?
The "13 percent rate" is the equivalent annual rate. So the interest will be 130.
