0
Is it true that it will take money in savings 14.2 years to double at 5 percent interest compounded annually?
Wiki User
∙ 14y ago
Yes, that's an accurate number.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What would be the ending balance of a 235 savings account earning 5 percent interest compounded annually after 2 years?
It would be 259.0875 so, I would guess most banks would round that DOWN to 259.08 rather than up.
Eric earns 6.5 percent simple interest annually on his savings account he has a beginning balance of 459.32 How much interest does he receive?
29.86
Lateisha would like to know how much money she will earn if the interest is compounded monthly for a period of two months on a savings account that pays 6 percent interest on 2000?
20.05
What would be the ending balance of a 1290 savings account earning 12 percent interest compounded monthly after 1 year?
12 percent, compounded monthly is the equivalent of an annual rate of approx 390%. At that rate, 1290 would be worth 5025.81 (approx).
What was the total savings for 400 annual rate 6 percent 6 percent compounded semiannually?
The total grows as time passes. That's the whole idea of interest and compounding. In order to calculate what the total is now, we need to know how long it has been in the account accumulating interest, and you haven't told us that.
What would be the ending balance of a 700 savings account earning 8 percent interest compounded quarterly after 3 years?
8 percent compounded quarterly is equivalent to approx 36% annually. At that rate, after 3 years the ending balance would be 1762.72 approx.
You opened a savings account with the deposited 5000 in a six percent interest rate compounded daily what is the amount in the account after 180 days?
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.
You deposit 2000 in a savings account that pays 10 percent interest compounded annually How much will your account be worth in 15 years?
7954/- At the end of 5 years - 2928/- At the end of 10 years - 4715/-
What would be the ending balance of a 235 savings account earning 5 percent interest compounded annually after 2 years?
It would be 259.0875 so, I would guess most banks would round that DOWN to 259.08 rather than up.
Eric earns 6.5 percent simple interest annually on his savings account he has a beginning balance of 459.32 How much interest does he receive?
29.86
How long will money in savings take to double at 5 percent interest compounded annually?
Use the "rule of 72"...simply put, using compound interest you take the number 72 and divide it by the interest rate. Thus, at 5% the time to double is 14.4 years. This formula can be used for calculating a "double" for any interest rate using the same mathematical procedure.
Lateisha would like to know how much money she will earn if the interest is compounded monthly for a period of two months on a savings account that pays 6 percent interest on 2000?
20.05
What would be the ending balance of a 1290 savings account earning 12 percent interest compounded monthly after 1 year?
12 percent, compounded monthly is the equivalent of an annual rate of approx 390%. At that rate, 1290 would be worth 5025.81 (approx).
You have a savings account that provides 5% interest, compounded annually, on your total balance. You put $1000 in the account 10 years ago but forgot about it (you haven’t added more money and you haven’t withdrawn money)?
The final amount is $1,647.01
How much money will 500 dollars accumulate over 20 years at 5 percent interest?
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.
Compound Interest and Your Return?
Compound Interest and Your Return How interest is calculated can greatly affect your savings. The more often interest is compounded, or added to your account, the more you earn. This calculator demonstrates how compounding can affect your savings, and how interest on your interest really adds up!
What financial products offer compounding interest?
When a financial product pays compounded interest the investor earns interest on interest earned. For example, when $1,000 is invested at a compounded rate of 5 percent the principal balance of the investment would increase to $1,050 at the end of year one assuming annual compounding of interest. In year two the investor would receive interest at 5 percent on $1,050 for an interest payment of $52.50 in year two. Money left to accumulate at compounded interest can grow tremendously over time (see Compounded Earnings: Making Your Money Work for You).Banks offer compounded interest on savings accounts and certificates of deposit. Another method of obtaining a compounded rate of interest can be achieved by buying US Treasury issued zero coupon bonds which offer the advantage of long dated paper and the ability to know upfront what the compounded rate of return will be (see Zero Coupon Bonds Explained: Locking in Long Term Profits).
