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.
1 year
1996.50
With compound interest - the balance after 7 years would be 26336.18
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.
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
463.72
8 percent compounded quarterly is equivalent to approx 36% annually. At that rate, after 3 years the ending balance would be 1762.72 approx.
The final amount is $1,647.01
If compounded, interest = 81.244 and balance = 456.245 If not compounded, interest = 75 and balance = 450
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.
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.
1996.50
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.
Compounded daily means interest is calculated and added to the account balance every day, resulting in slightly higher overall returns compared to compounding monthly, where interest is calculated once at the end of each month. This difference is due to the more frequent compounding events in daily compounding.
It would be 259.0875 so, I would guess most banks would round that DOWN to 259.08 rather than up.
No. If the account is earning interest the current amount should be greater than the initial deposit.
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
29.86