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# Julia invested 3000 at an annual interest rate of 5 percent. From last year to this year there has been a 4 percent inflation rate. After a year the purchasing power of her investment?

Updated: 10/18/2022

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Q: Julia invested 3000 at an annual interest rate of 5 percent. From last year to this year there has been a 4 percent inflation rate. After a year the purchasing power of her investment?
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### Julia invested 3000 at an annual interest rate of 5 percent. From last year to this year there has been a 4 percent inflation rate. After a year the purchasing power of her investment .?

rose by 1 percent

### Julia invested 3000 at an annual interest rate of 5 percent from last year to this year there has been a 4 percent inflation rate after a year the purchasing power of her investment?

rose by 1 percent

### In 1960 the inflation rate was about 5.1. If you invested in a savings account with an annual interest rate of 4.9 what was the real growth rate of this investment?

A real "growth" of -0.0019%, approx.

### How much interest would you earn of a 30000 investment?

Depends on how you invested it and what rate of return that investment delivered.

### How much interest is earned on the account?

A \$5000 investment at an annual simple interest rate of 4.4% earned as much interest after one year as another investment in an account that earned 5.5% annual simple interest. How much was invested at 5.5%?

### Why does interest on checking accounts increase with increasing inflation?

Example : you have Rs. 100 to spend you have invested in bank . the bank give you 5% interest so that now you will earn 105 Rs. on your investment. current inflation is 2% that means you are paying 2% and your bank gives you 5% so (5-2) 3% is your profit you are generating extra Rs. 3 on your investment in bank Now the inflation rate increases to 6 % and your bank still gives you 5% on the checking account while investment made in mutual fund gives you return of 8% than Bank (5%-6%)= Loss of 1% Mutual Funds (8%-6%)= Profit of 2% So to overcome effect of inflation and to stay in the competition with other investment and to regulate banking operation the bank will increase interest on checking account to keep investors investing in bank.

### Nature of investment decisions?

Investment decisions are made by investors and stockholders about how and where money will be invested. Most of the time investments are made in the interest of companies and retirement plans.

### What are the problems that a company may encounter if it finds itself with excess of cash?

excess of cash will result in following problems: 1.loss of interest if cash were invested 2.loss of purchasing power during times of high inflation 3.security and insurance costs

### How do you work out interest accrued on spreadsheet for compound interest?

SupposeCapital invested = YAnnual Interest Rate = R%Period of investment = TThen if the interest is calculated (and compounded) n times a yeartotal value =Y*[1 + r/(100*n)]^(n*T)So interest accrued = Total value - YSupposeCapital invested = YAnnual Interest Rate = R%Period of investment = TThen if the interest is calculated (and compounded) n times a yeartotal value =Y*[1 + r/(100*n)]^(n*T)So interest accrued = Total value - YSupposeCapital invested = YAnnual Interest Rate = R%Period of investment = TThen if the interest is calculated (and compounded) n times a yeartotal value =Y*[1 + r/(100*n)]^(n*T)So interest accrued = Total value - YSupposeCapital invested = YAnnual Interest Rate = R%Period of investment = TThen if the interest is calculated (and compounded) n times a yeartotal value =Y*[1 + r/(100*n)]^(n*T)So interest accrued = Total value - Y

### What are the highest interest rates for a one year investment?

The highest interest rates for a one year investment depend upon the amount of money invested and the risk factor involved. If one invests \$2,500 with Discover Bank and purchases a CD for one year, the interest rate is .85%.

### How to calculate compound interest using a monthly investment calculator?

A simple formula can be used to calculate the amount the dollar invested is worth over a monthly period. Use PV*(1+R)/N where PV is your present investment, R is your interest rate and N is the number of investment periods.

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