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Franklin has 2500 in a savings account that pays interest at the rate of 4 percent annually. How much interest will he earn after one year?
4% of 2500 = 2500*4/100 = 100 Assuming there is no compounding - The above calculation is appropriate and 100 is the interest earned by Franklin at the end of one year. There are banks that offer quarterly or half yearly compounding wherein, the interest earned in the first quarter would be considered as principal in the second quarter. In that case, the calculation would vary. In the UK the quoted rate must be the annual equivalent rate which takes any compounding into account. So 4 percent annually (as stated in the question), could be 1.98% every six months, or 0.3274% every month. But at the end of one year the compounded interest must be 4%. Other countries will have different regulations.
What is the continuous compounding rate equivalent to an effective interest rate of 18 percent?
2
Interest on 5000000.00 at 3 percent?
150,000 per year (simple interest, no compounding)
How many years will it take for an initial investment of 25000 to grow to 80000 at a rate of interest of 7 percent compounded continously?
"Continuously" is exactly how this question arrives on WikiAnswers. Someone has distributed an exam or a homework assignment with a poorly written question on it, and a lot of people are coming here to get the answer. WikiAnswers is not here to answer exam or homework questions. But the best response to this one isn't a numerical 'answer'. It's this: There's no such thing as "compounded continously", even if the spelling were corrected. The compounding interval must be specified, no matter how short it may be. Popular compounding intervals include: Annually, semi-annually, quarterly, monthly, weekly, or daily. Technically, it could even be hourly, or minutely, but it has to be specified. Compounding is a discrete process, and can never proceed "continuously".
How much money should be invested at 14 percent compounded quarterly to yield 12000 at the end of 7 years?
4795.65 (approx).
If a Principal of 12000 is invested in an account paying an annual interest rate of 10 percent what is the amount in the account after 6 years if the account is compounded quarterly?
Quarterly compounding means 1/4 of the annual interest rate is paid 4 times a year.In 6 years, you get 2.5 percent 24 times.(1.025)24 = 1.80873 (rounded)Your $12,000 has then grown to (12,000 x 1.80873) = $21,704.71 .Can I send you some money to add to the account for me ?
How do you converts interest rate from compounding quarterly to compound annually?
Interest of r% per quarter is equivalent to {(1+r/100)4 - 1} percent annually.
900 in savings account that earns 4 percent interest after two years how much is in the account if no deposits or withdrawals have been made?
It depends on the compounding frequency of the rate of interest earned on your bank account. Some banks compound the interest yearly and some do it quarterly. If the interest is compounded every year you will have 973.44 at the end of 2 years.
What is the interest on 1200 invested for 2 years in an account that earns 5 percent interest per year?
The answer, assuming compounding once per year and using generic monetary units (MUs), is MU123. In the first year, MU1,200 earning 5% generates MU60 of interest. The MU60 earned the first year is added to the original MU1,200, allowing us to earn interest on MU1,260 in the second year. MU1,260 earning 5% generates MU63. So, MU60 + MU63 is equal to MU123. The answers will be different assuming different compounding periods as follows: Compounding Period Two Years of Interest No compounding MU120.00 Yearly compounding MU123.00 Six-month compounding MU124.58 Quarterly compounding MU125.38 Monthly compounding MU125.93 Daily compounding MU126.20 Continuous compounding MU126.21
If 600 is deposited in a bank that pays 8.45 percent compounded quarterly what is the amount in the account after 10 months?
£765.31
Larry puts 4250 in an account for 8 years compounded quarterly at 4.5 percent interest. How much will he have at the end?
Use the formula: P(1+r/n)^tn (P is 4250, r is .045, n is 4, and t is 8) ...and you will get this answer: $6,079.42 If you encounter a problem that says the account is compounding continuously, use the formula P(e)^rt
How much would Kendra have in her account after three years if she started with 500 and earned 2 percent interest compounding annually?
$530.60
What would be the ending balance of a 700 savings account earning 8 percent interest compounded quarterly after 3 years?
8 percent compounded quarterly is equivalent to approx 36% annually. At that rate, after 3 years the ending balance would be 1762.72 approx.
How much interest will be earned in an account into which 1000 is deposited for one year with continuous compounding at a 13 percent rate?
The "13 percent rate" is the equivalent annual rate. So the interest will be 130.
If you deposited 1000 in a savings account that pays 8 percent interest quarterly how much could you have in eighteen months?
1000*(1.08)6 = 1586.87.
A principal of 835 is invested in an account at 3 percent per quarter simple interest Which of the following sequences describes the dollar amount of principal in the account at quarterly interval?
835.00, 860.05, 885.10, 910.15, 935.20,
Franklin has 2500 in a savings account that pays interest at the rate of 4 percent annually. How much interest will he earn after one year?
4% of 2500 = 2500*4/100 = 100 Assuming there is no compounding - The above calculation is appropriate and 100 is the interest earned by Franklin at the end of one year. There are banks that offer quarterly or half yearly compounding wherein, the interest earned in the first quarter would be considered as principal in the second quarter. In that case, the calculation would vary. In the UK the quoted rate must be the annual equivalent rate which takes any compounding into account. So 4 percent annually (as stated in the question), could be 1.98% every six months, or 0.3274% every month. But at the end of one year the compounded interest must be 4%. Other countries will have different regulations.
