It might just be 10%.
year
Total value = 20000*(1.06)2 = 22472 So interest = 2472
500 invested for 5 years at 7% interest compounded annually becomes 701.28
Rounded to the nearest cent, $15000 x 1.0415 = $27014.15
100000 x 1.125
8.0432 years (rounded) if compounded annually.
Interest = 2472
11 years
Answer: 9.1% At 8.5% principal grows by (1+(.085/12))^12 = 1.0884 times in one year which is less than investing at 9.1%.
Only if the 1% per month is compounded annually and not monthly.
If the interest is compounded annually, then the first interest payment isn't added until the end of the first year. Until then, the investment is worth exactly $15,000.00 .
0.9938% per month, when compounded is equivalent to 12.6% annually.
year
compounded annually--$43,219 compounded quarterly--$44,402 compounded monthly-- $44,677 compounded daily--$44,812
8029.35
Total value = 20000*(1.06)2 = 22472 So interest = 2472
$19.22 (rounded)