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60. 563,037.12
$100,000 x (1 + 5/1200)144 = $181,984.89 (rounded)
fv = pv(1+r/12)^t Where: fv = future value pv = present (initial) value r = interest rate t = time period
It would be worth 428.24 if the interest was added on once each year. If the interest were to be compounded monthly rather than annually the value would be 447.67
Annual: 176.23 Semiannually : 179.08 Quarterly: 180.61 Monthly: 181.67 Daily: 182.19 (assuming 365.25 days per year, on average).
It is 712.97
Compounded annually: 2552.56 Compounded monthly: 2566.72
1862
It means that at the end of every month, (7/12) of 1 percent of the lowest value of your account during the previous month is added to it.
If a sum of money was invested 36 months ago at 8% annual compounded monthly,and it amounts to $2,000 today, thenP x ( 1 + [ 2/3% ] )36 = 2,000P = 2,000 / ( 1 + [ 2/3% ] )36 = 1,574.51
$100,000 x (1 + 5/1200)144 = $181,984.89 (rounded)
There is no such thing as "compounded continuously". No matter how short it may be, the compounding interval is a definite amount of time and no less.
the future value of $5,000 in a bank account for 10 years at 5 percent compounded bimonthly?
fv = pv(1+r/12)^t Where: fv = future value pv = present (initial) value r = interest rate t = time period
$5,790
It would be worth 428.24 if the interest was added on once each year. If the interest were to be compounded monthly rather than annually the value would be 447.67
Annual: 176.23 Semiannually : 179.08 Quarterly: 180.61 Monthly: 181.67 Daily: 182.19 (assuming 365.25 days per year, on average).
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.