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What would be the value of one hundred dollars with a five percent compound interest after two years?
That depends on how often it is compounded. For annual compounding, you have $100 * (1 + 5%)2 = $100 * (1.05)2 = $100*1.1025 = $110.25
This works because at the end of the first compounding period (year), you've earned interest on the amount at the beginning of the compounding period. At the end of the first year, you have $105.00, and the same at the beginning of the second year. At the end of the second compounding period, you have earned 5%
interest on the $105.00 so it is $105 * (1.05) = $100*(1.05)*(1.05) or $100 * 1.052.
Compounding more often, will yield a higher number, but not much over a 2 year period. Compounding continuously, for example is $100 * e(2*.05) = $100 * e(.1)= $100 * e(.1) = $100 * 1.10517 = $110.52 (27 cents more).
Compounding daily will be close to the continuous function, and compounding monthly or quarterly will be between $110.25 and $110.52
What else can I help you with?
Six hundred dollars is borrowed at an interest rate of 1.4 percent per month Find the interest for a 30-month period?
252
How much interest would you gain from 2000 dollars at 6 percent for five years?
Assuming simple interest, just multiply 2000 dollars x (6/100) x 5. For compound interest, the formula is a bit more complicated. You would get some more interest in the case of compound interest.
What is 20 percent of five hundred dollars?
One hundred dollars
What is compound interest of 1500 dollars for 5 years at interest of 5 percent?
Compound interest functions can be represented as [(1+i)^t]*n, where i = interest rate t = time n = original number [(1.05)^5]*1500 = $1914.42
What is the APR on money market funds and CDs?
The APR or Annual Percentage Rate of a bank CD is how much you actually get at the end of the year, due to compound interest. To keep it simple, let's say you buy a hundred dollar CD and the percentage rate you are promised is ten percent. You expect to get your hundred dollars plus an extra ten dollars at the end of the year. Due to the magic of compound interest, you get more. Suppose the bank compounds the interest every week. (Many banks compound daily!) The first week you get a week's worth of interest on your hundred dollars. The second week you get a week's worth of interest on your hundred plus interest on the previous week's interest. The third week you get interest on your hundred and on the first week's interest and on the second week's interest. And on and on. So the only number you care about is not the Interest Rate, but the Annual Percentage Rate, because that is what you will actually receive at the end of the year. If the Percentage Rate is 4.21% and the APR is 4.30% you will get $4.30 interest on each $100 in your bank CD. None of this applies to Money Market Funds. Their percentage rates can change from day to day.
What is two percent out of one hundred thousand dollars?
Two percent out of one hundred thousand dollars is two thousand dollars.
Eight hundred dollars is borrowed at an interest rate of 1.5 percent per month Find the interest paid over a period of 5 months?
$60.00
What is ten percent of thirteen hundred dollars?
one hundred thirty dollars.
What is 4 percent of two hundred thousand dollars?
Four percent of two hundred thousand dollars is calculated by multiplying 200,000 by 0.04. This gives you 8,000. Therefore, 4 percent of two hundred thousand dollars is 8,000 dollars.
Is simple interest at 4.25 percent better than compound interest at 4.25 percent?
Simple interest is the interest you earn on your principal, IE the amount of your original investment. For example, you put 1000 dollars in a saving account paying 3% per annum. At the end of the year you will have earned 30 dollars on that one thousand dollars. If you leave the principal and interest in the account for another year you will earn another 30.00 on your original 1000 dollars plus .90 interest. on the first 30.00 dollars interest. This gives you a total of 1060.90 in your second year. In each succeeding year you will earn interest on your interest plus interest on your original principal which, if left alone will add up to a substantial some given the power of compound interest. One caveat, compound interest is a double edged sword. If you have a loan and fail to make your monthly payments on time, compound interest will gut you financially.
What is fifty percent of two hundred thousand dollars?
One hundred thousand dollars.
What is 7.4 percent compound interest on 500.00?
The interest for 1 year is 37.00, whether it is simple or compound interest.
