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If you need a monthly income then obviously a monthly income is better. If the monthly interest is not withdrawn then it makes no difference because the annual interest rate is usually equal to the compounded monthly rate.
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∙ 9y ago
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What interest rate would you need to double your money in 10 years compounded annually?
you would need an interest rate of 7.2 %. this would be a great slow return leaving you better off. with today's economy there is plenty of real estate to launch a wealthy careeer ahead.
Jon deposits 1000 in an account that pays 8 percent interest compounded annually How long will it take to double your money?
1). My money will never double. Let's talk about Jon's money instead. 2). It doesn't matter how much he deposits into the account. The time required for it to double is the same in any case. 3). At 8% interest compounded annually, the money is very very very nearly ... but not quite ... doubled at the end of 9 years. At the end of the 9th year, the original 1,000 has grown to 1,999.0046. If the same rate of growth were operating continuously, then technically, it would take another 2days 8hours 38minutes to hit 2,000. But it's not growing continuously; interest is only being paid once a year. So if Jon insists on waiting for literally double or better, then he has to wait until the end of the 10th year, and he'll collect 2,158.92 .
Which do you prefer a bank account that pays 5 percent per year EAR for three years or an account that pays 2.5 percent every six months for three years?
The latter of the two would be your better option, assuming the interest is properly compounded. Consider. In the first case, your resulting payment would be: P * 1.053 = P * 1.157625, or a total gain of just over 15.76% In the second case, your resulting payment would be: P * 1.0256 = P * 1 .159693418212890625, for a total gain of just over 15.96%
What is the noun for better?
The noun for better is better.
What is the noun of better?
The noun of "better" is "better" As in "You should respect your betters." "All the better to eat you with".
What is better daily or monthly compound interest?
daily
What is better a higher or a lower percentage?
If you are receiving interest on an assett, a higher interest is better. If you are paying interest on a debit, a lower interest is better.
Why modified duration is a better measure than maturity when calculating the bonds sensitivity to changes in interest rate?
i need the answer...please
Isn't paying no interest loan by paying monthly due amount better than paying in full in term of improving credit score by having good payment history?
Making monthly payments on a no interest loan is way better than paying it off in full if you are looking to improve your credit score.
What type of interest is better to have when applying for a loan?
A+ Simple Interest
Is it better to have a credit card with a high interest rate or low interest rate?
If you carry a balance, then it's better to have a low interest rate. If you do not carry a balance, then the interest rate doesn't matter at all.
Is it better to have higher interest rate when a company borrows money or to have a lower interest rate?
It depends from your point of view. if you are the company borrowing, it is better to have a low interest rate, because it means you are paying less money when you have to pay back your annual debt. If you say had an interest rate of 6%, you would be paying 6% of the actual amount every time you pay the debt. Example: You have borrowed $10,000 say if you are paying it off monthly and your interest rate is 5% you would be paying $500 extra.
When you are earning interest is it better to have high or low rates?
High rates.However, high interest rates are usually a consequence of high inflation rates and so what matters is not the interest rate but the real interest rate which is the nominal interest rate relative to the inflation rate.Thus a 3% interest rate when inflation is 1% is better that a 5% interest rate when inflation is 4%.
What is the difference between simple interest and compound interest is one better than the other why or why not?
With compound interest, after the first period you interest is calculated, not only on the original amount but also on the amount of interest from earlier periods. As to "better" or not, the answer depends on whether you are earning it on savings or paying it on borrowing!
Is simple interest at 4.25 percent better than compound interest at 4.25 percent?
Simple interest is the interest you earn on your principal, IE the amount of your original investment. For example, you put 1000 dollars in a saving account paying 3% per annum. At the end of the year you will have earned 30 dollars on that one thousand dollars. If you leave the principal and interest in the account for another year you will earn another 30.00 on your original 1000 dollars plus .90 interest. on the first 30.00 dollars interest. This gives you a total of 1060.90 in your second year. In each succeeding year you will earn interest on your interest plus interest on your original principal which, if left alone will add up to a substantial some given the power of compound interest. One caveat, compound interest is a double edged sword. If you have a loan and fail to make your monthly payments on time, compound interest will gut you financially.
Why should you get the lowest interest rate?
That is simply not true. It might be better to get a higher interest rate which is fixed for the term of the loan if you expect interest rates to rise.
Do Capital One credit cards make you pay a monthly fee?
Yes Credit cards have an interest charge that applies to your monthly balance as well as a monthly fee for having a card . Credit cards are vwery expensive . You are better off only using cash .
