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What does it mean by interest is compounded continuously and paid quarterly?
Normally, you have an interest rate, r, over some specified period (typically a month, quarter or year) and an amount Y that is invested (or loaned) for n periods. Then the total value, V, of the investment is: V = Y*(1 + r/100)^n It is possible to chop up the total time interval into smaller intervals and adjust the interest rate correspondingly so that the total percentage change over a year remains the same. The above equation then takes the form V = Y*e^ax The statement in the question simply means that, instead of calculating the interest using the first formula, it is calculated using the second. The interest is then paid out every three months and so every three months the capital returns to the value Y.
What is every three months called?
a quarter of a year
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 rate of interest if a certain sum of money at compound interest becomes Rs. 7396 in two years and Rs 7950.7 in three years. find the rate of interest?
The difference between 2 years and 3 years is another addition of the interest. 7396 × (1 + rate/100) = 7950.7 → rate = (7950.7/7396 - 1) × 100 = 7.5 % compounded per year.
John invests 10000 for three years at 10 percent compounded annually How much will John have after the three years?
13310
What does quarterly mean in compounded interest?
It means that the interest is paid out every three months (quarter year). That means that the interest paid out after 3 months is earning interest for the remaining nine months. The quarterly interest rate is such that this compounding is taken into account for the "headline" annual rate. As a result, if the quarterly interest is taken out, then the total interest earned in a year will be slightly less than the quoted annual rate.
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.
Cindy has a savings account with National Bank. She earns 4 interest compounded yearly on 1250.00. What amount will she receive in interest in three years?
$156.08
What is the present value of 2000 discounted back three years if the interest rate is 8 percent compounded monthly?
If a sum of money was invested 36 months ago at 8% annual compounded monthly,and it amounts to $2,000 today, thenP x ( 1 + [ 2/3% ] )36 = 2,000P = 2,000 / ( 1 + [ 2/3% ] )36 = 1,574.51
How much would would the bank add if you had 300 for three years?
It depends on how often the interest is compounded(annually, monthly...) and also the interest rate of the bank also has an effect on the outcome.
What is the future value on an ordinary annuity of 12000 dollars per year for three years at 9 percent interest compounded annually?
39,337.20
Find compound interest on Rs800 for 3 years at an interest 8 percent compounded semiannually for three years Find the compound inte?
800 x (1.04)6 ie Rs1012.26
What does it mean by interest is compounded continuously and paid quarterly?
Normally, you have an interest rate, r, over some specified period (typically a month, quarter or year) and an amount Y that is invested (or loaned) for n periods. Then the total value, V, of the investment is: V = Y*(1 + r/100)^n It is possible to chop up the total time interval into smaller intervals and adjust the interest rate correspondingly so that the total percentage change over a year remains the same. The above equation then takes the form V = Y*e^ax The statement in the question simply means that, instead of calculating the interest using the first formula, it is calculated using the second. The interest is then paid out every three months and so every three months the capital returns to the value Y.
Every three months?
Quarterly
What is every three months?
Quarterly.
When can I go to a dentist?
Every three months
What is every 4 months of year called?
Every three months is called a quarter. And there are four quarters in a year.
