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What is the similarity between simple interest and compound interest?
Simple interest is calculated on the principal only. If you have $1,000 and earn 5% interest per year, you will receive $50 at the end of year one. At the end of year two, you will receive another $50. And on it goes. With compound interest, you earn interest on the principal plus any interest you previously earned. Looking again at the previous example, at the end of year one you will still receive $50. At the end of year two, however, you will receive $52.50. Why? Because the 5% is paid on the principal PLUS the interest you previously earned. At the end of 10 years, you'll receive $77.57. After 20 years, $126.35. With simple interest you would still receive only $50.
What does compound interest mean?
compounding of interest refers to the action wherein, the interest paid to us over a period of time would increase gradually.Ex: Lets say you invest Rs. 10000/- at 10% per annum which is compounded every quarter.So interest for first quarter: Rs. 250/-Principal at the end of first quarter: 10,250/-Interest for second quarter: Rs. 256.25/-Principal at the end of second quarter: 10,506.25/-the increase in interest in the second quarter is because, the interest paid during the first quarter is also considered for interest payment in the second quarter. So, even though the principal amount we invested remains the same the interest varies because of compounding of interest.The shorter the compounding period, greater is the interest earned.Simple interest is to charge interest on the principle amount.compound interest is the interest calculated on the simple interest!
With minerals what rights does an owner with 50 percent undivided interest have?
If you own an undivided one-half interest that means you own a 50% interest in the whole property. That would come into play if the mineral rights, the property, or a portion thereof was sold. For example, if the mineral rights were sold you would be legally entitled to 50% of the net profit. The buyer would be required to cut a check for that amount in your name.
Fred bought some furniture having a price tag of 600 Fred had to pay 17 percent interest for 6 months How much more would Fred pay when the time is up?
17 percent of 600 is (0.17 times 600) = 102. That amount would be added to the 600, for a total of 702, if Fred paid nothing until the end of the 6 months. (With an annualized interest rate of 34%, it would be quite foolish to take possession of anything on that basis.)
Opposit of interest?
The opposite of the word interest would be indifference or boredom.
How many years would it take for money to triple in value at 20 percent per year simple interest?
10 years. Compound interest would take 7 years.
What is the interest on 3000 at 12 percent?
Simple interest would be 360
What is 13 percent interest on 8000?
Simple interest would be 1040
How much interest would you gain from 2000 dollars at 6 percent for five years?
Assuming simple interest, just multiply 2000 dollars x (6/100) x 5. For compound interest, the formula is a bit more complicated. You would get some more interest in the case of compound interest.
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.
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.
What is three percent a year on onehundred and tenthousand?
This would be a gain of 3300 assuming it is savings and 3% is APR. The second year would be higher, assuming compound as opposed to simple interest
How long it would take for 20500 to earn an interest of 59648.75?
That would also depend on the interest rate, and whether you are using simple or compound interest.
When a borrrower pays back a loan both the principal and the interest must be repaid what is the total amount you would pay back on a simple interest loan with a principal of 10500 at 6.3 percent for?
Simple interest means the interest is calculated one time on the total principal of the loan. Therefore, you would pay back $11,161.50 on this loan. However, simple interest loans are very uncommon; most loans in life have compound interest.
How much would you repay the bank if you borrowed 7900 at 4.3 percent annual interest for 6 years?
9,938.20 * * * * * That would be correct only if banks charged simple interest as opposed to compound interest. Anyone believe that likely? The correct answer, when interest is compounded, is 7900*(1.043)6 = 10170.28
How much will a 1 dollar deposit be worth after 48 years if the interest rate paid by the bank is 6 percent?
At simple interest, it would be $3.88 (6 cents per year for 48 years = 2.88). At compound interest, credited annually, it would be $16.39 (rounded). At compound interest, credited quarterly, it would be $17.44 (rounded). Compounding means that once credited, the interest becomes part of the principal for the next interest period.
How do you find the percent paid on interest?
You would first find the percent (if it was 5% interest (for example) on a calculator you would do the amount then multiply by 5, then click the percent, by hand: you would multiply the amount you paid for then multiply by 0.05 then you would get the interest; simple math :D
