0
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?
Wiki User
∙ 12y ago
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.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
How much interest would be paid on 11000.00 at 6 percent per month?
11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.
How much interest is earned for the investment 20 000 for 2 years at 6 percent compounded annually?
Interest = 2472
What is the monthly interest rate of 18 percent annually?
With simple interest, it is 1.5% per month. If compounded, it is 1.389% approx.
What is compound interest on 15000 at 6 percent compounded annually for 2 years?
1257
What is 20000 in 20 years with 7 percent interest compounded annually?
It is approx 77393.69 units of currency.
Eric earns 6.5 percent simple interest annually on his savings account he has a beginning balance of 459.32 How much interest does he receive?
29.86
How much interest should the account earn per year if you opened a bank account and deposited 500.00 and it earns 6 percent annually?
30.00
June deposited 8450 in an account that pays 6 percent interest compounded annually find the amount she will have in the account at the end of 8 years?
13468.02
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
5 percent interest compounded annually means percent paid every?
year
What does 4.9 percent p. a. interest mean on a credit card?
It means the percent of interest paid annually (p.a. means per annum).
How much interest will be earned on 1250 at a 5 percent interest annually?
5% ($72.50) per year.
You deposit 2000 in a savings account that pays 10 percent interest compounded annually How much will your account be worth in 15 years?
7954/- At the end of 5 years - 2928/- At the end of 10 years - 4715/-
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.
What is the simple interest paid annually for 5 years on a 700 loan at 11 percent per year?
The interest paid annually is 700*5/100 = 35
Savings account A has 1500 and pays 3.5 percent interest yearly Savings account B has 1400 and pays 4 percent interest yearly The savings account that earned the most interest after one year is?
Account B
How much interest would be paid on 11000.00 at 6 percent per month?
11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.
