APR stands for annual percentage rate. That being the case, it does not matter whether the interest is compounded every day or every millisecond. The effect, at the end of a year is interest equal to 2.25 percent.
So, 2000 at 2.25 percent compounded, for 4 years = 2000*(1.0225)4 = 2000*1.093083 = 2186.17
Invest at an amount of 200000 at a bank that offers an interest rate of 7,6%p.a Compounded annually for a period of 3 years
compounded annually--$43,219 compounded quarterly--$44,402 compounded monthly-- $44,677 compounded daily--$44,812
$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.
If the annual equivalent rate of interest is 8.5 percent then it makes no difference how frequently it is compounded. The amount will grow to 9788.81 On the other hand 8.5 percent interest daily is equivalent to 8.7 trillion percent annually! If my calculation is correct, after 6 years the amount will have grown to 2.85*10198 (NB 10200 = googol squared).
the future value of $5,000 in a bank account for 10 years at 5 percent compounded bimonthly?
Compounded, it is 419.22Compounded, it is 419.22Compounded, it is 419.22Compounded, it is 419.22
$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.
If the 5% is yearly, and it is compounded monthly, that means that the monthly interest rate is 5/12 percent. In this case, the base factor, in the formula for compound interest, is 1 + 5/1200. After one year (12 monthly periods), the capital would be 200000 x (1 + 5/1200)12. If you want to invest the money for two years (24 months), replace the exponent 12 by 24, etc.
It depends on when it's compounded. Left alone and compounded annually, the total is 441.87.
It makes a difference how often the interest is compounded, and you haven't given that information. If it's compounded annually, then your 10,000 becomes 12,762.82 after 5 years. If it's compounded quarterly, then it becomes 12,820.37 . If it's compounded "daily", then it becomes 12,840.03 . If it's "simple" (uncompounded) interest, then 10,000 swells to a full 12,500 in 5 years.
500 invested for 5 years at 7% interest compounded annually becomes 701.28
Compounded annually: 2552.56 Compounded monthly: 2566.72
In the event that it really was 5% daily, you would earn nearly 2.5*1041. By way of comparison, the current value of the total world output is less than 100 trillion USD or 1014 USD. So, it would be worth the total world output for 2.5 octillion years. Somehow I don't think so. However, when banks say 5% compounded daily what they are really saying is the daily equivalent of 5% per year - that is to say 0.0149% daily - but compounded (added to your capital) on a daily basis. It terms of the calculations, then it is the same as 5% for 5 years. And that is 138.14 units of currency.
30 at 1 percent compounded over 10 years makes 30*(1.01)10 = 33.14 (approx).
With the interest compounded, it is 250*(1.025)2 = 262.66
If compounded, approx 245.25 million.
Compounded yearly, you would end up with $11,901.16