Let P be the amount of invested money (P = 5,000), and iper cent a year the interest (i = 6).
After one year, the amount becomes P + (i/100)P. This equals P(1 + i/100), so that adding on i per cent is equivalent to multiplying by 1 + i/100.
When interest is compound annually, the new amount is used to calculate the interest due in the second year and so, after two years, the amount becomes P(1 + i/100)^2.
After n years, the amount becomes
P(1 + i/100)^n
which is the formula for compound interest.
So, after 5 years, the amount becomes
P(1 + i/100)^5
= 5,000(1 + 6/100)^5
= 5,000(1 + 0.06)^5
= 5,000(1.06)^5
= 6,691.127888
= 6,691.13
8029.35
It depends on when it's compounded. Left alone and compounded annually, the total is 441.87.
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).
$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.
7,093 * * * * * No, that is for 6 years. For 5 years it is 5000*(1.06)5 = 6691.13
8029.35
$19.22 (rounded)
compounded annually--$43,219 compounded quarterly--$44,402 compounded monthly-- $44,677 compounded daily--$44,812
500 invested for 5 years at 7% interest compounded annually becomes 701.28
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: 2552.56 Compounded monthly: 2566.72
It depends on when it's compounded. Left alone and compounded annually, the total is 441.87.
1257
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).
$407.94
It is approx 77393.69 units of currency.
12100