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Q: How much interest will be earned in an account into which 1000 is deposited for one year with continuous compounding at a 13 percent rate?

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compounding interest.... i think

it is any interest after the first compounding there isn't a special name for it...

$530.60

No. If the account is earning interest the current amount should be greater than the initial deposit.

13468.02

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The terminology of compounding interest means adding interest to the interest that one already has on an account. The interest could be added to a bank account or to a loan.

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

compounding interest.... i think

money

$73.21

An Interest bearing account is a bank account in which, the banks pays you an interest for keeping your money deposited in that account. Ex: Savings Bank Account - You usually get around 3.5% rate of interest on the money you hold in your savings account in India.

it is any interest after the first compounding there isn't a special name for it...

If you opened a savings account and deposited 5000 in a six percent interest rate compounded daily, then the amount in the account after 180 days will be 5148.

Accrued interest is obtained when the payment is received to the borrower. When the payment is received, interest is then realized and deposited into your account.

At the end of the year the interest is deposited in the account. The next year the interest is figured on the principal plus last year's interest.

Amount Deposited = 5000 Rate of Interest = 7.25 Years = 3 Interest earned = 5000 * 7.25 * 3 / 100 = 1087.50 They will have 6087.50 at the end of 3 years (Under the assumption that no compounding was involved)

$530.60

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