0
To calculate this, break up the interest into four pieces and put them to the power of n. That is
- Annual interest = P(1+i)4n
- Quarterly = P(1+i/4)n
- i/4 = 0.07/4, so
- (1.0175)4 ~ 1.072, which is the rate of change per annum. The effective i is
- 100%*(1.072-1)/1 = 7.2%
Add your answer:
Earn +20 pts
What is the effective annual rate of 8 percent interest that is compounded monthly?
0.67 percent
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 is the effective rate of 13.5 percent when the interest is compounded semiannually?
It is 1.135^2 - 1 = 28.8%
Find the effective rate when the stated rate is 13.5 percent and the interest is compounded semiannually?
13.96%
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.
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 is the effective annual rate of 8 percent interest that is compounded monthly?
0.67 percent
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 is the effective rate of 13.5 percent when the interest is compounded semiannually?
It is 1.135^2 - 1 = 28.8%
Find the effective rate when the stated rate is 13.5 percent and the interest is compounded semiannually?
13.96%
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
What is the nominal rate of interest per annum compounded monthly equvalent to effective interest rate of 12.60 percent per annum?
0.9938% per month, when compounded is equivalent to 12.6% annually.
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.
