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If a person has money invested at 9 percent and the rate of inflation is 5 percent how much return are they actually making on their investment?
To find the real return on an investment, subtract the inflation rate from the nominal interest rate. In this case, if the investment earns 9 percent and inflation is at 5 percent, the real return is 9 percent - 5 percent = 4 percent. Therefore, the investor is actually making a return of 4 percent on their investment after accounting for inflation.
Bens 1000 bond earns 7.5 percent in annual interest What is the annual interest?
75
1000 is invested at 9 percent simple interest for 3 years This investment earns?
Interest = (Principal x Time X Rate)/100 so in this case interest = (1000 x 3 x 9)/100 = 2700/100 = 27
What is 3 percent of 100.00 per annum for 6 years?
If the 3% is "simple" interest, then the $100 earns an extra $18 in 6 years. If the interest is compounded yearly, then it earns $19.41 extra. If the interest is compounded weekly, then it earns $19.72 extra.
In 2 to 4 sentences describe why compound interest earns more money than simple interest.?
Compound interest earns more money than simple interest because it calculates interest on both the initial principal and the accumulated interest from previous periods. This "interest on interest" effect allows the investment to grow at an accelerating rate over time. In contrast, simple interest is calculated solely on the original principal, leading to a linear growth pattern. As a result, the longer the investment period, the more pronounced the benefits of compound interest become.
If a person has money invested at 9 percent and the rate of inflation is 5 percent how much return are they actually making on their investment?
To find the real return on an investment, subtract the inflation rate from the nominal interest rate. In this case, if the investment earns 9 percent and inflation is at 5 percent, the real return is 9 percent - 5 percent = 4 percent. Therefore, the investor is actually making a return of 4 percent on their investment after accounting for inflation.
Bens 1000 bond earns 7.5 percent in annual interest What is the annual interest?
75
Earl's 1000 bond earns 6.2 percent in annual interest What is the annual interest?
62
1000 is invested at 9 percent simple interest for 3 years This investment earns?
Interest = (Principal x Time X Rate)/100 so in this case interest = (1000 x 3 x 9)/100 = 2700/100 = 27
What is 3 percent of 100.00 per annum for 6 years?
If the 3% is "simple" interest, then the $100 earns an extra $18 in 6 years. If the interest is compounded yearly, then it earns $19.41 extra. If the interest is compounded weekly, then it earns $19.72 extra.
What makes a saving account a better investment than checking account?
A savings account earns interest.
What makes a savings than a checking account account a better investment?
A savings account earns interest.
Why is it beneficial to invest over a long period of time?
Investing over a long period of time is beneficial because it allows your money to grow through compound interest. This means that your initial investment earns interest, and then that interest also earns interest over time. The longer you invest, the more time your money has to grow, potentially resulting in a larger return on your investment.
What is the principal amount which earns Rs24 as simple interest for 3 years at 10 percent interest per annum?
Rs 80.
Suppose you place 10000 in a retirement fund that earns a nominal interest rate of 8 percent If you expect inflation to be 5 percent or lower then you are expecting to earn a real interest rate of?
3 percent
What is 3 percent of 300000 over 30 years?
If the interest is simple interest, then the 300,000 earns an additional 270,000 in 30 years (on top of the principle). If the interest is compound interest paid annually, then the 300,000 earns an additional 428,178.74 in 30 years (on top of the principle).
How much does a tour guide earn in a year?
he earns 12000 a year
