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Does the more compounding periods per year decreases the total amount of interest you receive over the year?
No. The more often it's compounded, the more interest you receive,and the faster your investment grows.
What is the balance on 2500 deposit at 3 percent compounded annually for 3 years?
After 1 year, you would have 2,500 * 1.03 = 2,575. After the 2nd year you would have 2,575 * 1.03 = 2,652.25. After the 3rd year you would have 2,652.25 * 1.03 = 2731.8175 or rounded to $2,731.82. The formula for this is FV = PV * (1+i)^n, where FV = future value, PV = present value, i = interest rate per compounding period, and n = number of periods.
How much interest is earned on R9 000 invested for five years at 8 percent per annum and compounded annually?
For compound interest F = P*(1 + i)^n. Where P is the Present Value, i is the interest rate per compounding period, and n is the number of periods, and F is the Future Value.F = (9000)*(1 + .08)^5 = 13223.95 and the amount of interest earned is 13223.95 - 9000 = 4223.95
How do you change dollars per year to dollars per hour?
Divide by the number of hours per year that you claim to work for.
How much per year is 80 dollars per hour?
It depends on the number of hours worked in a year!
How much would 300 invested at 4 percent interest compounded monthly be worth after 8 years?
The compound interest formula is FV = P(1+i)^n where FV = Future Value P = Principal i = interest rate per compounding period n = number of compounding periods. Here you will need to calculate i by dividing the nominal annual interest rate by the number of compounding periods per year (that is, i = 4%/12). Also, if the money is invested for 8 years and compounds each month, there will be 8*12 compounding periods. Just plug the numbers into the formula. You can do it!
What is the interest on 1200 invested for 2 years in an account that earns 5 percent interest per year?
The answer, assuming compounding once per year and using generic monetary units (MUs), is MU123. In the first year, MU1,200 earning 5% generates MU60 of interest. The MU60 earned the first year is added to the original MU1,200, allowing us to earn interest on MU1,260 in the second year. MU1,260 earning 5% generates MU63. So, MU60 + MU63 is equal to MU123. The answers will be different assuming different compounding periods as follows: Compounding Period Two Years of Interest No compounding MU120.00 Yearly compounding MU123.00 Six-month compounding MU124.58 Quarterly compounding MU125.38 Monthly compounding MU125.93 Daily compounding MU126.20 Continuous compounding MU126.21
Does the more compounding periods per year decreases the total amount of interest you receive over the year?
No. The more often it's compounded, the more interest you receive,and the faster your investment grows.
How do you transform nominal risk free rate into periodic rate?
To transform a nominal risk-free rate into a periodic rate, you would first need to determine the compounding frequency (e.g., annual, semi-annual). Then, you can divide the nominal rate by the number of compounding periods per year to calculate the periodic rate. For example, if the nominal rate is 5% annually and compounding is semi-annually, the periodic rate would be 2.5% (5% / 2).
Interest on 5000000.00 at 3 percent?
150,000 per year (simple interest, no compounding)
When using compound rate tables the annual rate divided by the number of periods per year gives you what?
Rate per period
What is monthly repayment on 500000 loan at 10 percent interest per year for 20 years?
This depends on if the interest is compounding every year or not.
What is the balance on 2500 deposit at 3 percent compounded annually for 3 years?
After 1 year, you would have 2,500 * 1.03 = 2,575. After the 2nd year you would have 2,575 * 1.03 = 2,652.25. After the 3rd year you would have 2,652.25 * 1.03 = 2731.8175 or rounded to $2,731.82. The formula for this is FV = PV * (1+i)^n, where FV = future value, PV = present value, i = interest rate per compounding period, and n = number of periods.
What rate of interest compounded annually is required to double an investment in 16 years?
Future Value = (Present Value)*(1 + i)^n {i is interest rate per compounding period, and n is the number of compounding periods} Memorize this.So if you want to double, then (Future Value)/(Present Value) = 2, and n = 16.2 = (1 + i)^16 --> 2^(1/16) = 1 + i --> i = 2^(1/16) - 1 = 0.044274 = 4.4274 %
The concepts of simple interest and compound interest and how these affected the results of your investment exercise?
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
How much would 200 invested at 6 percent intrest compounded annually be worth after 5 years?
Formula for future value is F = P*(1 + r)^n, Where:F is Future valueP is Present valuer is the rate per unit time (so 6% per year is 0.06)n is the number of compounding time periods (annually, so n=5 for 5 years)F = 200*(1+.06)^5 = 267.65
Monthly pay?
Paid once a month (12 pay periods per year)
