To calculate compound interest:
final_value = (1 + rate/100)periods x amount
So for amount = 2000, at a rate = 6% per year over a period of 35 years you get:
final_value = (1 + 6/100)35 x 2000
= 1.0635 x 2000
~= 15372.17
25000 x (1.02)14 = 32976.97. For comparison, compounded annually would give 25000 x (1.04)7 = 32898.29, not a huge difference but worth having!
Interest = 2472
11 years
If the interest is compounded annually, then the first interest payment isn't added until the end of the first year. Until then, the investment is worth exactly $15,000.00 .
Approx 44.225 % The exact value is 100*[3^(1/3) - 1] %
25000 x (1.02)14 = 32976.97. For comparison, compounded annually would give 25000 x (1.04)7 = 32898.29, not a huge difference but worth having!
It might just be 10%.
It is 52936.72
8.0432 years (rounded) if compounded annually.
Interest = 2472
11 years
If the interest is compounded annually, then the first interest payment isn't added until the end of the first year. Until then, the investment is worth exactly $15,000.00 .
Assuming interest is compounded annually, 1000*(1.08)5
Approx 44.225 % The exact value is 100*[3^(1/3) - 1] %
Answer: 9.1% At 8.5% principal grows by (1+(.085/12))^12 = 1.0884 times in one year which is less than investing at 9.1%.
Left alone, that investment would be worth 705.79 after four years.
Compounding frequency refers to how often interest is calculated and added to the principal amount in an investment or loan. Common compounding frequencies include daily, monthly, quarterly, semi-annually, and annually. The more frequently interest is compounded, the higher the overall return or cost will be on the investment or loan.