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You deposit 750.00 in an account that earns 5 percent simple interest How much interest will your money earn in 6 months?
7.5 x 2.5 ie 18.75
How do you figure out your total amount of money after interest?
It depends on whether it is simple or compound interest. The formula for simple interest is A = P(1+rt), where A = amount of money after t years, P = Principal, or the amount of money you started with, and r = the annual interest rate, expressed as a decimal (i.e. 7% = 0.07). For compound interest, the formula is A = P(1+r)t.
What do you get if You deposit 750.00 in an account that earns 5 percent simple interest How much interest will your money earn in 6 months?
Two and a half percent of 750 ie 2.5 x 7.5 which is 18.75
What is an amount of money multiplied by the interest rate and the amount of time that the money will be earning interest?
The amount of money multiplied by the interest rate and the amount of time it earns interest represents the interest earned over that period. This can be expressed using the formula: Interest = Principal × Rate × Time, where the Principal is the initial amount of money, Rate is the interest rate (as a decimal), and Time is the duration in years. This calculation is fundamental for understanding simple interest in finance.
What is simple interest?
Simple interest does not compound. In other words, If you start off with $500 and get $5 in interest, the $5 you got in interest will not be included when calculating the amount of interest you will get next year. Simple interest can be calculated by the formula i = prt, where i is the amount of money earned from the interest, p is the principle (starting money), r is the rate (as a decimal,) and t is the time in years. Another formula is used to calculated the accumulated amount: A = p(rt + 1), where A is the accumulated amount.
Why do you earn more money using compound interest than you would using simple interest?
You earn more money using compound interest than simple interest because compound interest calculates interest on both the initial amount and the accumulated interest, leading to faster growth of your money over time.
You deposit 750.00 in an account that earns 5 percent simple interest How much interest will your money earn in 6 months?
7.5 x 2.5 ie 18.75
Why do banks pay their customers interest on the money in their accounts?
That money earns interest when the bank loans it out.
How do you figure out your total amount of money after interest?
It depends on whether it is simple or compound interest. The formula for simple interest is A = P(1+rt), where A = amount of money after t years, P = Principal, or the amount of money you started with, and r = the annual interest rate, expressed as a decimal (i.e. 7% = 0.07). For compound interest, the formula is A = P(1+r)t.
Why is it beneficial to invest over a long period of time?
Investing over a long period of time is beneficial because it allows your money to grow through compound interest. This means that your initial investment earns interest, and then that interest also earns interest over time. The longer you invest, the more time your money has to grow, potentially resulting in a larger return on your investment.
What is the term for a type of account that earns interest as money is deposited?
money
Is compound interest or simple interest better to have in your savings account?
Compound interest is generally better for savings accounts than simple interest because it allows your money to grow at a faster rate. With compound interest, you earn interest not only on your initial principal but also on the accumulated interest over time, leading to exponential growth. This makes it particularly advantageous over long periods, maximizing your savings potential.
What do you get if You deposit 750.00 in an account that earns 5 percent simple interest How much interest will your money earn in 6 months?
Two and a half percent of 750 ie 2.5 x 7.5 which is 18.75
If Mary deposits 275 in principal at an interest rate of 3.2 percent how much interest will she earn in one year?
Before she chooses a bank and deposits her money, Mary should shop around first.There are different kinds of interest.At 3.2% . . .If it's simple interest, her money will earn $ 8.80 .If it's compounded quarterly, it earns $ 8.91 in one year.If it's compounded monthly, it earns $ 8.93 .If it's compounded daily, it earns $ 8.94 .Also, by the way, notice that Mary doesn't earn the interest. Her invested money does.
What is the difference between Simple interest and compound interest for two years on a certain sum of money at 4 percent is Rs160 the sum is?
Simple: 160 + (1.6 x 4 x 2) = 172.80 Compound: 160 x (1.04)2 = 173.06
How much money would you have if you put 100 in the bank for a year at 2 percent?
That depends whether the bank is giving you simple interest or compound interset and if it is compound interest is it compounded daily, monthly, quarterly, halfyearly and so on. Assuming it is simple interest, at the end of the year will have 100 + 2 = 102 dollars.
You want to borrow 125 from your dad if he loans you money for 2 months at 6 interest per month how much do you owe him?
Simple interest 140.00, compound interest (where interest is added to the previous months interest) 140.45
