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Principal x Rate x Time. For example: $180,000 (cost of investment) x 0.067 (6.7% interest) x 30 (years)

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What is the formula for finding interest?

i=prt FACT: If an annual interest rate is given, time in the simple interest formula must be expressed in terms of years.


What is the rule 72 used for?

Rule 72 is a simple formula used to estimate the number of years required to double an investment based on a fixed annual rate of return. By dividing 72 by the expected annual return percentage, investors can quickly gauge how long it will take for their investment to grow. For example, at an 8% return, it would take approximately 9 years to double the investment (72 ÷ 8 = 9). It's a handy tool for financial planning and investment analysis.


Matthew made an investment with an 8 annual yield. However the real growth rate of his investment was only 5. What was the inflation rate?

It was 2.86%.


John buys a 1000 bond that pays 6 annual interest at 75. What is John's annual yield?

To calculate John's annual yield, we first need to determine the annual interest payment he receives from the bond, which is 6% of $1,000, amounting to $60. Since he purchased the bond for $750, the annual yield can be calculated by dividing the annual interest payment by the purchase price: $60 / $750 = 0.08 or 8%. Thus, John's annual yield on the bond is 8%.


How do you use rule of 72?

The Rule of 72 is a simple formula used to estimate the number of years required to double an investment based on a fixed annual rate of return. To use it, divide 72 by the expected annual interest rate (expressed as a whole number). For example, if your investment earns 6% annually, it would take approximately 72 ÷ 6 = 12 years to double your money. This rule provides a quick and easy way to gauge the impact of compound interest on investments.

Related Questions

What is the formula to calculate the annual return based on the daily return of an investment?

To calculate the annual return based on the daily return of an investment, you can use the formula: Annual Return (1 Daily Return)365 - 1.


What is the formula for the payback period?

Formula for the Payback Period. Payback period = Initial investment / Annual Cash inflows


How to calculate the equivalent annual cost of a project or investment?

To calculate the equivalent annual cost of a project or investment, you need to consider the initial cost, annual expenses, and the project's lifespan. Use formulas like the annuity formula or the present value formula to determine the equivalent annual cost. This helps in comparing different projects or investments on an annual basis.


How to find the annual rate of return on an investment?

To find the annual rate of return on an investment, you can use the formula: (Ending Value - Beginning Value) / Beginning Value x 100. This will give you the percentage return on your investment for one year.


How can I calculate the annual rate of return over multiple years for my investment portfolio?

To calculate the annual rate of return over multiple years for your investment portfolio, you can use the formula for compound annual growth rate (CAGR). This formula takes into account the initial and final values of your investment, as well as the number of years the investment has been held. You can calculate CAGR using the following formula: CAGR (Ending Value / Beginning Value) (1 / Number of Years) - 1 By plugging in the values for the ending value, beginning value, and number of years, you can determine the annual rate of return for your investment portfolio.


How can I calculate the monthly percentage rate for a loan or investment?

To calculate the monthly percentage rate for a loan or investment, you can use the formula: Monthly Percentage Rate (Annual Percentage Rate / 12). This formula divides the annual rate by 12 to determine the monthly rate.


How do you calculate the equivalent annual cost for a project or investment?

To calculate the equivalent annual cost for a project or investment, you need to consider the initial cost, annual operating expenses, salvage value, and the project's lifespan. The formula for equivalent annual cost is the sum of annual operating expenses, depreciation, and the opportunity cost of capital. This calculation helps to determine the annual cost of the project or investment over its lifespan, making it easier to compare different options.


What is the formula for finding interest?

i=prt FACT: If an annual interest rate is given, time in the simple interest formula must be expressed in terms of years.


How can one find the annual yield of an investment?

To find the annual yield of an investment, you can calculate it by dividing the annual income generated by the investment by the initial amount invested, and then multiplying by 100 to get a percentage.


How can one calculate the annual rate of return over multiple years?

To calculate the annual rate of return over multiple years, you can use the formula for compound annual growth rate (CAGR). This formula takes into account the initial and final values of an investment over a specific period of time to determine the average annual return.


What is the annual rate of an investment 20000 at an annual interest rate of 7 and 12000.00 at an annual interest rate of 7.5 what was his annual income on the two investment?

Devon has a lil dick


When you convert nominal rates that are compounded more than 1 time per year into annual rates you are finding the?

That's where you get the " APR " on a loan, or the " yield " on an investment.