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How much money can you make off of 1.2 million in interest with a rate of 2 percent over a 10 year period?
Wiki User
∙ 12y ago
That's going to depend on the compounding interval.
As a first shot:
-- If interest is paid annually, and you take it as soon as it's paid and leave only
the original $1.2 million in the investment, then you're skimming away
0.02 x $1,200,000 = $24,000 each year, for a total of $240,000 in ten years.
With the same annual interest payment, if you leave the interest in the account
until the end of the 10-year period, then at the end of 10 years, the account
is worth
$1,200,000 x (1.02)10 = $1,462,793.30, for a total profit of $262,793.30 .
Compared to taking the interest at the end of every year, your profit is
about 9.5% more overall if you let the interest stay there and work for
you until the end of the 10 years.
Wiki User
∙ 12y ago
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How much money should be deposited at 4.5 percent interest compounded monthly for 3 years?
"How much money should be deposited at 4.5 percent interest compounded monthly for 3 years?"Incomplete question.... to do what?
How much money is 2.5 percent from 25 million Riyal?
2.5% = 0.0250.025 x 25 million = 625,000
What would 5 percent interest be on 15000 for 10 years?
If interest money will be added to to invested money each year, the result will be 15000x(1+0.05)^10=24,433.42 (rounded) If interest money will not be added to to invested money, the result will be 15000x(1+0.05x10)=22,500
How much money must be deposited now at 6 percent interest compounded semiannually to yield an annually payment of 4000 at the end of each six month period for a total of five years round your answer?
$35144.44
How do I Calculate interest on 100000?
To calculate an interest (as money), multiply the capital, times the interest rate (divided by 100, if it is expressed in percent), times the number of periods. The above assumes simple interest; compound interest is a bit more complicated.
5 million operating income net depreciation is 1 million interest expense of 1 million corporate tax rate is 40 percent what is the net income?
the remainders of money after a companies revenue is deducted
Lateisha would like to know how much money she will earn if the interest is compounded monthly for a period of two months on a savings account that pays 6 percent interest on 2000?
20.05
What is the percent charged or earned on an amount of money?
Rate of interest.
What is the interest rate of 7 percent?
i have to know the money and time
How can find interest percent in Rs100000?
First find out what the interest rate is from the money lender or deposit taker.
5000 is invested at 3 percent interest How much money must be invested at 5 percent interest so that the total interest from the two investments is 275 after one year?
$2,500 is your answer
How much money is six percent of two million?
120,000
How much interest will one million dollars earn you?
It depends on the interest rate and what sort of savings you put the money into.
How much money should be deposited at 4.5 percent interest compounded monthly for 3 years?
"How much money should be deposited at 4.5 percent interest compounded monthly for 3 years?"Incomplete question.... to do what?
If I placed 350 in a bank which paid 6 percent interest for a period of 28years how much money would I have at the end of the 28th year?
This depends on whether the interest paid is "simple" or "compounded". If the interest is simple, the answer is 350[1 + 28(0.06)] = 938, if the 6 percent rate is considered exact. If the interest is compounded, the answer is: 350(1 + 0.06)28, or about 1,789.09, if the interest rate is considered exact. Both answers assume no withdrawals from the bank during the 28 year period and that the bank can pay its debts.
What is periodic rate for compound interest rate of 5.6 percent?
Your question cannot be answered without knowing what period you are talking about. Is the period a year, a month, a day? Compound interest means that interest is added periodically on the latest sum of principle and interest for that period. For example, let's say your interest rate of 5.6 percent is compounded (or calculated) annually (APR). On a $1000 dollar investment, you would earn $56 dollars at the end of a year (1000+(1000*0.056)). If you withdraw your money after 365 days you would receive $1,056. Next year (assuming you left the money there) you would receive $1,115.40 (1056+(1056*.056)). Good luck finding that. Even so, save your money. It's still worth more in your pocket than spent.
What is the price paid for the use of a sum of money over a period of time?
That is interest.
