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It doesn't matter how much the original investment is. If it triples in 5 yearswith monthly compounding, then the interest rate is 22.175% (rounded)
No. The more often it's compounded, the more interest you receive,and the faster your investment grows.
It is 20000*(1.07)^60 = 1158928.54
1200
It will be 726.
Interest is compounded semiannually if the interest is calculated every six months and added to the capital.
$1480.24
It doesn't matter how much the original investment is. If it triples in 5 yearswith monthly compounding, then the interest rate is 22.175% (rounded)
Simple interest (compounded once) Initial amount(1+interest rate) Compound Interest Initial amount(1+interest rate/number of times compounding)^number of times compounding per yr
It is 1.135^2 - 1 = 28.8%
13.96%
No. The more often it's compounded, the more interest you receive,and the faster your investment grows.
$5,249.54
1200
It is 20000*(1.07)^60 = 1158928.54
After 5 years, 20000 at 7% per annum compounded semiannually will be 20000*(1 + 0.5*7/100)2*5 = 20000*(1.035)10 = 28211.98
It will be 726.