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It doesn't matter how much the original investment is. If it triples in 5 yearswith monthly compounding, then the interest rate is 22.175% (rounded)
No. The more often it's compounded, the more interest you receive,and the faster your investment grows.
It is 20000*(1.07)^60 = 1158928.54
1200
It will be 726.
Interest is compounded semiannually if the interest is calculated every six months and added to the capital.
$1480.24
Compounding frequency refers to how often interest is calculated and added to the principal amount in an investment or loan. Common compounding frequencies include daily, monthly, quarterly, semi-annually, and annually. The more frequently interest is compounded, the higher the overall return or cost will be on the investment or loan.
It doesn't matter how much the original investment is. If it triples in 5 yearswith monthly compounding, then the interest rate is 22.175% (rounded)
Simple interest (compounded once) Initial amount(1+interest rate) Compound Interest Initial amount(1+interest rate/number of times compounding)^number of times compounding per yr
It is 1.135^2 - 1 = 28.8%
13.96%
No. The more often it's compounded, the more interest you receive,and the faster your investment grows.
$5,249.54
1200
It is 20000*(1.07)^60 = 1158928.54
After 5 years, 20000 at 7% per annum compounded semiannually will be 20000*(1 + 0.5*7/100)2*5 = 20000*(1.035)10 = 28211.98