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What is the interest compounded annually when 5000 is invested in an account paying 6.38 percent interest for 10 years?
At the end of the first year, the balance in the account is: 5000(1+.0638). At the end of the second year, the balance in the account is: 5000(1+.0638)(1+.0638). At the end of the third year, the balance in the account is: 5000(1+.0638)(1+.0638)(1+.0638). At the end of the t year, the balance in the account is: 5000(1+.0638)^t. So, at the end of the tenth year, the balance in the account is 5000(1+.0638)^10 = 9,280.47. $5,000 is your principal, and the remaining ($9,280.47 - $5,000) = $4,280.47 is the interest.
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
The equality of the accounting equation can be proven by preparing a?
trial balance
How much would 120 invested at 6 percent interest compounded monthly be worth after 21 years Round your answer to the nearest cent?
120 x (1.0621). You need a calculator with logarithms to solve this quickly. Take the log of 1.06, multiply that by 21 then take the antilog. The answer should be close to 3.4 I have 3.995636 which would give 407.95 to the nearest cent. Later: Sorry, this is based on annual compounding. For monthly the equation is 120 x (1.005252). You're on your own, I'm afraid! * * * * * The second part of the above answer is correct if this is purely a mathematical exercise. However, 6% compounded monthly is an annual interest rate of approx 101.2%. If you know anyone who gives even a tenth of that rate I would be interested to know! What happens, in real life, is that the financial company advertises the annual equivalent rate of their monthly rate. So, a 6% rate, compounded monthly, is really 0.487% monthly. This is because 0.487% compounded 12 times is 1.0048712 = 1.06, or 6% per annum. Then the real life problem reduces to 6% per annum for 21 years, which is 120*(1.06)21 = 407.95 - as in part 1 of the above answer. * * * * * The last paragraph above is incorrect. As was stated in the first answer, that would be for annual compounding. To calculate 6% per annum (which is what we usually mean by interest rates) compounded monthly, you first convert the interest rate to a monthly rate by dividing by 12, and that of course is half a percent per month, so every month the balance is multiplied by 1.005. So the answer of 120 x (1.005252) given there is correct. On the scientific calculator on my computer, I get $421.72.
The balance in Beths checking account is 75 she must deposit enough money in her account to be able to pay the electric bill which us 110 how much should she deposit?
Current Balance: 75 Amount needed for Electricity Bill: 110 Amount that needs to be deposited = 110 - 75 = 35 Beth needs to deposit atleast 35 dollars if she wants enough money to pay her electricity bill.
What is the balance after 7 years if you deposit 350 every quarter into a savings account that earns 4.5 percent interest compounded quarterly?
$11,573.02 if you deposit at the beginning of the quarter or $11,444.27 if you deposit at the end of the quarter
What is the interest and balance of 375 at 4 percent for 5 years?
If compounded, interest = 81.244 and balance = 456.245 If not compounded, interest = 75 and balance = 450
Can you find the account balance on 3000 principal earning 6.4 interest compounded quarterly for 7 years?
An annual rate of 6.4% compounded quarterly means 1.6% (6.4/4) every 3 months (12/4). A period of 7 years is equivalent to 28 (7 x 4) compounding periods. Let say that the account balance is N dollars, so N = 3,000(1.016)^28 (100% + 1.6% = 1.016) N = $4,678.914
What lump sum will Jim need to deposit now in an account paying 7.25 percent compounded quarterly if he wants to have a balance of 50000 in 15 years?
He should deposit 17017.82
How the interest on savings account is calculated?
The interest on a business savings account is compounded daily using a 365-day year (366 days each leap year) and calculated on the collected balance.
A couple invests 2800 in an account paying 7 percent compounded quarterly How much is in the account after one year?
The interest is said to be compounded quarterly when compound interest is paid four times a year, and the compounding period is three months. After t years, the balance A, in an account with principal P and rate r (in decimal form) is given by the formula A = P(1 + r/n)nt In our case P = 2,800, r = 7% = 0.07, n = 4, and t = 1 year, so we have: A = P(1 + r/n)nt A = 2,800(1 + 0.07/4)(4)(1) ≈ 3,001.21 The balance after one year is 3,001.21
What if Jennifer deposited 10000 in an account that earns compound interest. The annual interest rate is 8 and the interest is compounded 2 times a year. The current balance in the account is 10?
No. If the account is earning interest the current amount should be greater than the initial deposit.
You deposit 250 in a bank account that offers compound interest at a rate of 5 compounding quarterly. At the end of five years your balance is?
320.51 A+
Difference between compounded daily or monthly?
Compound interest is interest that is paid on both the original principal balance and interest earned. For example, a $100 savings account with a 5% rate of interest compounded annually would have a balance of $105 at the end of year one. At the end of year two the account would earn interest income on the entire account balance of $105 and the interest payment would amount to $5.25 at which point the saver would have an account balance of $110.25. The extra 25 cents of income in year two represents interest on the previous year's interest. Savings can be compounded on different dates including annual, monthly, daily, or continuously. The compounding date represents the date that the savings account balance is updated. The difference between daily or monthly compounding does not result in materially different account balances at the end of the compounding period. For example, a $10,000 savings account compounded at 5% monthly would be worth $44,677 at the end of 30 years compared to an account balance of $44,812 when compounded daily.
What is the current interest rate offered at ING direct for a savings account?
All savings accounts in India offer an average of 3 to 3.5% interest per annum calculated on a daily end of day account balance basis. The interest is calculated based on the every day balance in the account and would be credited on a quarterly or half yearly basis.
You deposit 700 in an account that pays 8 percent interest compounded yearlyfind the balance after 13 years?
You will have 1903.737 dollars in your account at the end of 13 years. The year wise end balance will be:756816.48881.798952.3421028.531110.8121199.6771295.6511399.3031511.2471632.1471762.7191903.737This is under the assumption that you don't deposit any fresh funds into your account and initial 700 dollars + the accumulated interest is all that is available in the account.
Saving account minimum balance of ICICI?
It depends on the type of account you have. For ex:For a regular savings account you need a quarterly minimum balance of Rs. 10000/-For a Salary account - it is '0'For a Savings account with a Gold Debit card - it is Rs. 50000/- quarterly balanceEtc.
