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It helps calculations if you think about compound interest as your money increasing every period (for instance, every year) by a certain factor. For example, if you get 5% interest per annum, your capital will increase by a factor of 1.05 every year. If you repeat this, say, 10 years, then your capital will obviously increase by a factor of 1.0510.
The detailed formula for the capital you have after a number of periods is thus:
(initial capital) x (1 + rate/100)periods
If you want to know only how much interest you earned, rather than the total money you'll have, just subtract the initial capital.
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What is the interest rate of 13.75 percent compounded monthly is equivalent to a daily compounded interest rate?
14.651
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
Is interest on a judgment compounded?
Yes.
What is the monthly interest rate of and annual 10 percent rate?
It is 0.833... recurring % if the interest is simple, or compounded annually. If compounded monthly, it is approx 0.797 %
How many interest will you get for 1 million?
It depends on the rate of interest, how it is compounded, and how long it draws interest.
What is the interest rate of 13.75 percent compounded monthly is equivalent to a daily compounded interest rate?
14.651
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
Is interest on a judgment compounded?
Yes.
How much would 2000 become in 10 years at 5 percent interest?
If it is not compounded the interest would be 2000x10x.05=1000 If it is compounded then it is different.
What is the monthly interest rate of and annual 10 percent rate?
It is 0.833... recurring % if the interest is simple, or compounded annually. If compounded monthly, it is approx 0.797 %
How many interest will you get for 1 million?
It depends on the rate of interest, how it is compounded, and how long it draws interest.
150 if invested for three years at a 9 percent interest rate?
$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.
Is interest compounded weekly is compounded fifty times a year false?
Yes: a year is not 50 weeks.
Would the statement 'Simple Interest is interest earned on interest' be True or False?
False. Interest upon interest is compounded interest
How to compute compound interest using a recurcive programming?
This gives total after n years: Principal x ((1 + interest rate) to the power n) eg 2500 @ 5% over 7 years compounded annually = 2500 x (1.05)7 = 2500 x 1.407 = 3517.75
What is meant by compounded interest in terms of economics?
In terms of economics, compounded interest means the interest earned from the principal and added interest. In many cases, this method is always used by some internet scammers to lure people to invest.
How many times interest be added to the principal in one year if the interest is compounded annually?
"Compounded annually" means that the interest is added once a year.
