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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.
What is the interest rate of the annuity formula and how is it calculated?
The interest rate in the annuity formula represents the rate at which your money grows over time. It is calculated by dividing the annual payment by the present value of the annuity, and then adjusting for the number of compounding periods per year.
How can I use the compound interest calculator in Google Sheets to calculate the growth of my investments over time?
To use the compound interest calculator in Google Sheets, you can input the initial investment amount, the annual interest rate, the number of compounding periods per year, and the number of years you plan to invest for. The formula to calculate compound interest is A P(1 r/n)(nt), where A is the future value of the investment, P is the principal amount, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years. By entering these values into the appropriate cells in Google Sheets and using this formula, you can calculate the growth of your investments over time.
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).
How can I convert the effective annual rate (EAR) to the annual percentage rate (APR)?
To convert the effective annual rate (EAR) to the annual percentage rate (APR), you can use the formula: APR (1 EAR/n)n - 1, where n is the number of compounding periods per year.
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
How do you calculate the annual percentage yield (APY) on a certificate of deposit (CD)?
To calculate the annual percentage yield (APY) on a certificate of deposit (CD), you can use the formula: APY (1 (interest rate/n))n - 1, where the interest rate is the annual interest rate and n is the number of compounding periods per year.
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.
How can I use the Google Sheets compound interest calculator to determine the growth of my investments over time?
To use the Google Sheets compound interest calculator, input the initial investment amount, the interest rate, the number of compounding periods per year, and the number of years you plan to invest. The calculator will then show you the growth of your investments over time, taking into account compound interest.
