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You can earn a lost of interest on a billion dollars. The amount of interest you will earn will depend upon your rate of interest and how long you leave it in the bank.
With compound interest, in the second and subsequent periods, you are earning interest on the interest earned in previous periods. If you withdraw the interest earned at the end of every period, the two schemes will earn the same amount.
With compound interest the interest amount is added to the principle and then earns interest as well. This is usually expressed as an annual percentage rate (APR). Simple interest is not added to the principle and does not earn further interest and is used rarely.
Use the equation I= Prt P= Principal amount(starting)r= Rate as a decimalt=timeI = (55)(0.04)(5)= 11Therefore, he will earn $11 in interest after 5 years.
The amount of interest you earn on 10 million dollars varies greatly based on the type of investment being made. High return investments can yield over 10% while safer options are around 2 or 3%.