729.17
The monthly interest is 100.
An average of 321.56
Compounded annually: 2552.56 Compounded monthly: 2566.72
350*0.025*5 = 43.75
313.37
The difference in the total amount of interest earned on a 1000 investment after 5 years with quarterly compounding interest versus monthly compounding interest in Activity 10.5 is due to the frequency of compounding. Quarterly compounding results in interest being calculated and added to the principal 4 times a year, while monthly compounding does so 12 times a year. This difference in compounding frequency affects the total interest earned over the 5-year period.
The monthly interest is 100.
1/12th of 5% because there are 12 months in a year. ANSWER:- 1/60th per cent, which is the same as 0.01667 of the amount invested.
90,000
$10,000 X 14% (interest) : $1,400 p.a. X 5 yrs: $7,000 over the 5yr (60 months) period. The monthly interest payment will be $116.67
79.17
95
5% ($72.50) per year.
5 percent
226.45
It doesn't matter how much the original investment is. If it triples in 5 yearswith monthly compounding, then the interest rate is 22.175% (rounded)
If the 5% is yearly, and it is compounded monthly, that means that the monthly interest rate is 5/12 percent. In this case, the base factor, in the formula for compound interest, is 1 + 5/1200. After one year (12 monthly periods), the capital would be 200000 x (1 + 5/1200)12. If you want to invest the money for two years (24 months), replace the exponent 12 by 24, etc.