The dollar in your pocket is worth .99 of a dollar. also nominal interest=real interest+inflation so nominal interest goes up by 1%
1927.23 IF the interest is compound (accrued on the totalsum each year)... 1891.00 IF the interest is simply calculated on the initial deposit.
At simple interest, it would be $3.88 (6 cents per year for 48 years = 2.88). At compound interest, credited annually, it would be $16.39 (rounded). At compound interest, credited quarterly, it would be $17.44 (rounded). Compounding means that once credited, the interest becomes part of the principal for the next interest period.
Because the dollar can be invested today and earn interest
between 60 cents and one dollar
Principle: is the beginning amount of money that is deposited or owed. For instance, you deposit $100 or you take on a loan that is worth $100. The $100 is your principle amount. Interest: Is the cost of borrowing. The higher principle, the higher interest payment you will have to pay because the interest due is a percent of the Principle.
its actually the other way around. the value of the us dollar effects interest rates. the lower the us dollar is worth, the lower the interest rate