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What is the formula to calculate the daily and monthly interest for a CD with interest that accrues daily and compounds monthly?
Because different months have different amount of days, the formula varies. If it's monthly, you take your principal (P), times your interest rate (R), divided by 12 months in a year. Thus, P*R/12= monthly interest rate.
Answer edited by Macintoast 6/13/2009: I am not a banker and I don't know the correct answer to your question off hand. I do know that the answer above is overly simplistic and inaccurate because it only gives you the approximate NON-compounded monthly interest rate and does not fully answer the question. The correct answer to the question is a longer formula with variables and parentheses, so you'll recognize it when you see it. Good luck.
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you are right that you are not a banker, but you are a wanker.
What else can I help you with?
What is the correct formula for compound interest?
Suppose the amount invested (or borrowed) is K, Suppose the rate of interest is R% annually, Suppose the amount accrues interest for Y years. Then the interest I is 100*K[(1 + R/100)^Y - 1]
What is the formula to calculate monthly interest rate if the annual interest rate is known?
Annual Interest Rate divided by 12= Monthly Interest Rate
How do you find total amount if principle rater of interest months and interest is given?
To find the total amount, you can use the formula: Total Amount = Principal + Interest. First, calculate the interest using the formula: Interest = Principal × Rate × Time (in months/12). Then, add the interest to the principal to get the total amount.
Calculate the simple interest on a loan with a principal of 6000 an iterest of 7.39 percent and a term of four years?
To calculate simple interest, you use the formula: Interest = Principal x Rate x Time. In this case, the principal is $6000, the interest rate is 7.39% (or 0.0739 in decimal form), and the time is 4 years. Plugging these values into the formula gives: Interest = $6000 x 0.0739 x 4 = $1774.80. Therefore, the simple interest on the loan would be $1774.80.
What is the formula to calculate 1000 invested at 8 percent for 5 years?
Assuming interest is compounded annually, 1000*(1.08)5
What is the correct formula for compound interest?
Suppose the amount invested (or borrowed) is K, Suppose the rate of interest is R% annually, Suppose the amount accrues interest for Y years. Then the interest I is 100*K[(1 + R/100)^Y - 1]
How can one calculate their interest?
The formula used to calculate your interest is the principle balance, multiplied by the monthly interest rate. Then you mulitply that by the number of months in which you last paid interest.
What is the market rate of interest formula used to calculate the cost of borrowing money?
The market rate of interest formula used to calculate the cost of borrowing money is: Market Rate of Interest Risk-Free Rate Risk Premium.
What is the formula to calculate interest?
In calculating for the interest, please use the formula below:I = PRTwhere I stands for InterestP for principalR for rate; andT for time
How can I calculate compound interest using the compound interest formula in Google Sheets?
To calculate compound interest in Google Sheets, use the formula: A P(1 r/n)(nt), where A is the future value, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. Enter these values into the formula in the appropriate cells in Google Sheets to calculate the compound interest.
What is the formula to calculate monthly interest rate if the annual interest rate is known?
Annual Interest Rate divided by 12= Monthly Interest Rate
How do you calculate the principal and interest payment for a loan?
To calculate the principal and interest payment for a loan, you can use the formula: Payment Principal x (Interest Rate / 12) / (1 - (1 Interest Rate / 12)(-Number of Payments)). This formula takes into account the loan amount (principal), the interest rate, and the number of payments.
What is the Google Sheets interest formula and how can it be used to calculate interest on a loan or investment?
The Google Sheets interest formula is PMT(rate, nper, pv). This formula can be used to calculate the interest on a loan or investment by inputting the interest rate (rate), the number of periods (nper), and the present value (pv) of the loan or investment. The result will be the periodic payment needed to pay off the loan or the interest earned on the investment.
How can I calculate compound interest using Google Sheets?
To calculate compound interest in Google Sheets, you can use the formula A P(1 r/n)(nt), where A is the future value, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. You can input these values into separate cells in Google Sheets and then use the formula to calculate the compound interest.
How can I use Google Sheets for interest calculation?
To use Google Sheets for interest calculation, you can utilize the formula PMT(rate, nper, pv) to calculate the monthly payment on a loan. You can also use the formula FV(rate, nper, pmt, pv) to calculate the future value of an investment with compound interest. Additionally, you can use the formula PV(rate, nper, pmt, fv) to calculate the present value of an investment.
What is the market interest rate formula used to calculate the current interest rates in the financial market?
The market interest rate formula used to calculate current interest rates in the financial market is typically based on factors such as inflation, risk, and the overall economic environment. It is determined by the supply and demand for credit in the market, as well as the policies of central banks.
What is the Google Sheets compound interest formula and how can it be used to calculate interest over time?
The compound interest formula in Google Sheets 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 times interest is compounded per year, and t is the number of years the money is invested for. To calculate interest over time, you can input these values into the formula in a Google Sheets cell to get the total amount including interest.
