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If John invests 2300 in a savings account with a 6 percent interest rate compounded annually how long will it take until John's account has a balance of 4150?
Use Compound interest formula
I(n) =I(o)[1 + r/100]^n
Where
I(n) is final amount (4150)
I(o) is initial amount (2300)
r is rate percent = 6%
n is the number of years. ( to be found)
Substitute
4150 = 2300 [ 1 + 6/100]^n
4150 = 2300 [ 1.06]^n
1.06^n = 4150/2300
1.06^n = 1.804347826
Take logs to base '10' ( 'log' on the calculator) .
log 1.06^n = log 1.804347826
nlog1.06 = log 1.804347826
n(0.025305865 =0.25632026
n = 0.25632026 / 0.025305865
n = 10.12888743 yrs.
n ~ 10.125 = 10 1/8 yrs.
What else can I help you with?
What is the final balance for the investment1500 for 3 years at 10 compounded annually?
1996.50
If 20000 is invested in a savings account offering 3.5 per year compounded continuously how fast is the balance growing after 7 years (Round your answer to the nearest cent.)?
With compound interest - the balance after 7 years would be 26336.18
Can you find the account balance on 3000 principal earning 6.4 interest compounded quarterly for 7 years?
An annual rate of 6.4% compounded quarterly means 1.6% (6.4/4) every 3 months (12/4). A period of 7 years is equivalent to 28 (7 x 4) compounding periods. Let say that the account balance is N dollars, so N = 3,000(1.016)^28 (100% + 1.6% = 1.016) N = $4,678.914
Taylor wrote a check for 18 on the same day his bank paid interest to his account If his account balance changed 13 that day how much interest did he earn?
Well, honey, if Taylor's account balance changed by $13 on the day his bank paid interest and he wrote a check for $18, then he must have earned $31 in interest. It's simple math, darling. Just add the check amount to the change in the account balance, and there you have it.
Calculate the simple interest you would receive in five years on a savings account that earns 7.5 percent annual interest What if your beginning balance is 1236.59?
463.72
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.
You have a savings account that provides 5% interest, compounded annually, on your total balance. You put $1000 in the account 10 years ago but forgot about it (you haven’t added more money and you haven’t withdrawn money)?
The final amount is $1,647.01
What is the interest and balance of 375 at 4 percent for 5 years?
If compounded, interest = 81.244 and balance = 456.245 If not compounded, interest = 75 and balance = 450
What is the answer of the balance in the compound interest account 1400 after 3 years at 5.5 percent?
The question doesn't tell us the compounding interval ... i.e., how often theinterest is compounded. It does make a difference. Shorter intervals makethe account balance grow faster.We must assume that the interest is compounded annually ... once a year,at the end of the year.1,400 x (1.055)3 = 1,643.94 (rounded)at the end of the 3rd year.
What is the interest compounded annually when 5000 is invested in an account paying 6.38 percent interest for 10 years?
At the end of the first year, the balance in the account is: 5000(1+.0638). At the end of the second year, the balance in the account is: 5000(1+.0638)(1+.0638). At the end of the third year, the balance in the account is: 5000(1+.0638)(1+.0638)(1+.0638). At the end of the t year, the balance in the account is: 5000(1+.0638)^t. So, at the end of the tenth year, the balance in the account is 5000(1+.0638)^10 = 9,280.47. $5,000 is your principal, and the remaining ($9,280.47 - $5,000) = $4,280.47 is the interest.
How the interest on savings account is calculated?
The interest on a business savings account is compounded daily using a 365-day year (366 days each leap year) and calculated on the collected balance.
What is the final balance for the investment1500 for 3 years at 10 compounded annually?
1996.50
Difference between compounded daily or monthly?
Compound interest is interest that is paid on both the original principal balance and interest earned. For example, a $100 savings account with a 5% rate of interest compounded annually would have a balance of $105 at the end of year one. At the end of year two the account would earn interest income on the entire account balance of $105 and the interest payment would amount to $5.25 at which point the saver would have an account balance of $110.25. The extra 25 cents of income in year two represents interest on the previous year's interest. Savings can be compounded on different dates including annual, monthly, daily, or continuously. The compounding date represents the date that the savings account balance is updated. The difference between daily or monthly compounding does not result in materially different account balances at the end of the compounding period. For example, a $10,000 savings account compounded at 5% monthly would be worth $44,677 at the end of 30 years compared to an account balance of $44,812 when compounded daily.
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.
What would be the ending balance of a 235 savings account earning 5 percent interest compounded annually after 2 years?
It would be 259.0875 so, I would guess most banks would round that DOWN to 259.08 rather than up.
A bank account yields 7 percent interest compounded annually If you deposit 1000 in the account what will the account balance be after five years?
Per annum compound interest formula: fv = pv(1+r)^t Where: fv = future value pv = present (initial) value r = interest rate t = time period Thus, fv = 1000*(1+0.07)^5 = 1000*1.4025517307 = $1402.55
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
