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In 8 years Pat wants to have 19000 available to buy a car. How much should he invest today if the interest rate is 7.5 percent compounded quarterly. Please show your work?
Wiki User
∙ 7y ago
Each quarter, the capital increases by a factor of (1 + 7.5/4), so in 32 quarters, the capital will increase by a factor of (1 + 7.5/4)^32. Calculate this factor, then divide the final amount by this factor.
Wiki User
∙ 7y ago
Wiki User
∙ 7y agoExcept that's 7.5 percent. Each quarter, the investment will increase by 1.01875
1.01875^32 is about 1.812
19000/1.812 is about $10485.65
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What would be the amount of compound interest on 8000 invested for one year at 6 percent compounded quarterly round your answer to the nearest dollar?
$491
What will 10000 be worth after 5 years at 5 percent?
It makes a difference how often the interest is compounded, and you haven't given that information. If it's compounded annually, then your 10,000 becomes 12,762.82 after 5 years. If it's compounded quarterly, then it becomes 12,820.37 . If it's compounded "daily", then it becomes 12,840.03 . If it's "simple" (uncompounded) interest, then 10,000 swells to a full 12,500 in 5 years.
What is the effective annual rate of 8 percent interest that is compounded monthly?
0.67 percent
How much would 2000 become in 10 years at 5 percent interest?
If it is not compounded the interest would be 2000x10x.05=1000 If it is compounded then it is different.
What amount would you have after 10 years by in investing 500 every month and the investment earns 14 percent which is compounded quarterly?
You would have 2,294,862.92.However, 14% each quarter, compounded quarterly, is equivalent to 68.9% annually. You are unlikely to find such a return legitimately.
150 if invested for three years at a 9 percent interest rate?
$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.
What is the compound interest on 750000 pesos borrowed at 2.50 percent interest per year for 1 year if the interest is compounded quarterly?
Since the annual interest rate is given, the fact that the interest is calculated and compounded quarterly is not relevant. The interest is 750000*2.5/100 = 18750 pesos.
After 6 years what is the total amount of a compound interest investment of 35000 at 4 percent interest compounded quarterly?
$44,440.71
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.
What would be the amount of compound interest on 8000 invested for one year at 6 percent compounded quarterly round your answer to the nearest dollar?
$491
What will 10000 be worth in 30 years at 5 percent?
compounded annually--$43,219 compounded quarterly--$44,402 compounded monthly-- $44,677 compounded daily--$44,812
What is the future value of Rs1.00 invested for 10 years if 12 percent annual rate of interest is compounded quarterly?
1 x (1.03)40 = 3.26
7100 at 5 percent compounded quarterly for 10 year?
Roughly 11,669.70
How long does it take to get 40.00 on 8 percent interest with 2.00?
That depends on how the interest works.Is it simple interest ? Is it compound interest ?If compound, then how often is it compounded ?8% simple interest turns $2 into $40 in 237.5 years .8% compound interest, compounded quarterly, does the job in 37.8 years .As you can see, it makes quite a difference.
How much will you save after ten years if you save two thousand dollars and the bank offers a quarterly of 2.75 percent?
If interest is 2.75% per annum and is compounded quarterly, then aninitial investment of $2,000 will amount to $2,630.58after 10 years.
What is the interest rate of 13.75 percent compounded monthly is equivalent to a daily compounded interest rate?
14.651
Find the final amount for the investment 750 at 10 percent interest compounded quarterly for 10 years?
750 invested for 10 years at 10% pa would be 1,945
