4 years exactly.
Simple interest compounded annually and reinvested will yield 619173.64 before taxes.
100 x (1.05)4 = $121.55
$125 times (1.08)14 = $367.15 (rounded)
You would need 9687 dollars.
If compounded and assuming the amount was 3180 dollars, it would be 784 dollars.
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 .
$280.51
Simple interest compounded annually and reinvested will yield 619173.64 before taxes.
39,337.20
100 x (1.05)4 = $121.55
4000 x (1.0610) = $7163.39
$125 times (1.08)14 = $367.15 (rounded)
You would need 9687 dollars.
You will have 5000 dollars × (1 + 8/100)18 = 19,980 dollars.
The total amount to be repaid on a one-year term loan of 500 dollars with an interest rate of 12 percent depends on how often it is compounded. If it is only compounded once during the year, you will owe 560 dollars after one year.
That depends on whether you are getting 5% simple interest, or compound interest, and how often it is compounded. Simple interest is very easy to calculate; you just multiply. $500 at 5% earns 5% of $500 every year, which is $25, so in 20 years the interest earned is 20 x $25 or $500, for a total of $1,000. But if you put the money in a savings account in a bank, you get compound interest. It can be compounded annually, semi-annually, quarterly, monthly, or daily. The more often it is compounded, the more you earn. Nowadays you can get daily interest, but that is kind of complicated because it depends on whether you figure the interest for every single day, 365 days a year and 366 in a leap year, or the traditional banking custom of 360 days a year. For example, if you compound annually, every year your balance is multiplied by 1.05, so after 20 years you would have 500 x 1.0520, which is $1.326.65 to the nearest cent.
It is 3884.97 dollars.