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Approximately how long will it take for 1000 to grow to 5006 at 8 annual interest and compounded 12 times per year?
Use the equation $=$0*(1 + r)xn
where $ is the amount of money, $0 is the initial amount of money, r is the rate, x is the number of times per year the interest is compounded, and n is the number of years the interest is compounded. We are solving for n. To do this we need to use logs.
log(1 + r)($/$0)/x = n
log1.08(5006/1000)/12 = n = 1.744 years.
What else can I help you with?
How many times interest be added to the principal in one year if the interest is compounded semi annually?
Twice
How many times will interest be added to the principal in 1 year if the interest is compounded annually?
1 for me Ap#x
How many times will interest be added to the principal in 1 year if the interests is compounded quarterly?
Y
Which is bigger compounded interest quarterly or compound interest monthly?
With the same rate of interest, monthly compounding is more than 3 times as large.The ratio of the logarithms of capital+interest is 3.
The concepts of simple interest and compound interest and how these affected the results of your investment exercise?
Simple interest (compounded once) Initial amount(1+interest rate) Compound Interest Initial amount(1+interest rate/number of times compounding)^number of times compounding per yr
What does effective interest rate mean?
An effective annual interest rate considers compounding. When the principle is compounded multiple times each year the interest rate increased to be more than the stated interest rate. The increased interest rate is the effective annual interest rate.
How much will a 1 deposit be after 24 years?
The future value of a $1 deposit after 24 years depends on the interest rate and compounding frequency. For example, if the deposit earns an annual interest rate of 5% compounded annually, it would grow to approximately $3.20. At a 3% annual interest rate, it would amount to around $1.93. To calculate the exact amount, you can use the formula for compound interest: ( A = P(1 + r/n)^{nt} ), where ( 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.
How much would 300 invested at 4 interest compounded monthly?
To calculate the future value of an investment of $300 at a 4% annual interest rate compounded monthly, you can use the formula ( A = P \left(1 + \frac{r}{n}\right)^{nt} ), where ( P ) is the principal amount ($300), ( r ) is the annual interest rate (0.04), ( n ) is the number of times interest is compounded per year (12), and ( t ) is the number of years. For example, after 1 year, the amount would be approximately ( A = 300 \left(1 + \frac{0.04}{12}\right)^{12 \times 1} ), which equals about $312.16. The total will increase with the duration of the investment.
How much would 500 invested at 6 interest compounded monthly be worth after 4 years?
To calculate the future value of an investment with compound interest, you can use the formula: ( A = P(1 + \frac{r}{n})^{nt} ), where ( A ) is the amount of money accumulated after n years, ( P ) is the principal amount (initial investment), ( r ) is the annual interest rate (decimal), ( n ) is the number of times interest is compounded per year, and ( t ) is the number of years. For $500 invested at a 6% annual interest rate compounded monthly for 4 years: ( A = 500(1 + \frac{0.06}{12})^{12 \times 4} ) Calculating this gives approximately $634.96.
How much would 200 invested at 5 percent interest compounded monthly after 9 years?
To calculate the future value of an investment compounded monthly, you can use the formula: ( A = P(1 + \frac{r}{n})^{nt} ), where ( A ) is the amount of money accumulated after n years, including interest; ( P ) is the principal amount ($200); ( r ) is the annual interest rate (0.05); ( n ) is the number of times that interest is compounded per year (12); and ( t ) is the number of years the money is invested (9). Plugging in the numbers, the future value will be approximately $319.84 after 9 years.
Is interest compounded weekly is compounded fifty times a year false?
Yes: a year is not 50 weeks.
What if Jennifer deposited 10000 in an account that earns compound interest. The annual interest rate is 8 and the interest is compounded 2 times a year. The current balance in the account is 10?
No. If the account is earning interest the current amount should be greater than the initial deposit.
Can you give me the continuous compound interest formula?
Compound Interest FormulaP = principal amount (the initial amount you borrow or deposit)r = annual rate of interest (as a decimal)t = number of years the amount is deposited or borrowed for.A = amount of money accumulated after n years, including interest.n = number of times the interest is compounded per yearExample:An amount of $1,500.00 is deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly. What is the balance after 6 years?Solution:Using the compound interest formula, we have thatP = 1500, r = 4.3/100 = 0.043, n = 4, t = 6. Therefore, So, the balance after 6 years is approximately $1,938.84.
How many times will interest be added to the principal in 1 year if the interest rate is compounded annually?
Once.
How many times interest be added to the principal in one year if the interest is compounded semi-annually?
twoo '
How many times will interest be added to the principal in 1 year if the interest is compounded quarterly?
Four.
How many times interest be added to the principal in one year if the interest is compounded semi annually?
Twice
