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What is the interest on 1200 invested for 2 years in an account that earns 5 percent interest per year?
Wiki User
∙ 13y ago
The answer, assuming compounding once per year and using generic monetary units (MUs), is MU123.
In the first year, MU1,200 earning 5% generates MU60 of interest.
The MU60 earned the first year is added to the original MU1,200, allowing us to earn interest on MU1,260 in the second year.
MU1,260 earning 5% generates MU63.
So, MU60 + MU63 is equal to MU123.
The answers will be different assuming different compounding periods as follows:
Compounding Period Two Years of Interest
No compounding MU120.00
Yearly compounding MU123.00
Six-month compounding MU124.58
Quarterly compounding MU125.38
Monthly compounding MU125.93
Daily compounding MU126.20
Continuous compounding MU126.21
Wiki User
∙ 13y ago
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3% for 4 years is equivalent to 12% of the principal, in this case 12 x 9.5 which is 114.
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750
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2,400
What is the interest on 950 invested for 4 years in a account that earns simple interest at a rate of 3 percent per year?
Interest = Principal*Time*Rate = 950*4*3% = 950*4*3/100 = 114
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$4,500
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$2400
What is the interest on 950 invested for 4 years in an account that earns simple interest at a rate of 3 percent per year?
3% for 4 years is equivalent to 12% of the principal, in this case 12 x 9.5 which is 114.
How long will Lucy have to wait before her 2500 invested at 6 percent earns 600 in a simple interest?
She will have to wait 4 years.
What is a compound interest savings account?
Its where your savings account earns interest on the interest.
Eric earns 6.5 percent simple interest annually on his savings account he has a beginning balance of 459.32 How much interest does he receive?
29.86
How much interest should the account earn per year if you opened a bank account and deposited 500.00 and it earns 6 percent annually?
30.00
Calculate the simple interest you would receive in one year on a savings account that earns 5 percent annual interest What if your beginning balance is 255.19?
12.76
Calculate the simple interest you would receive in five years on a savings account that earns 7.5 percent annual interest What if your beginning balance is 1236.59?
463.72
What is a type of checking account that also earns interest these accounts generally have a minimum balance?
A type of checking account that also earns interest is called an interest-bearing checking account. These accounts typically require a minimum balance to be maintained in order to earn interest.
