答案 compounded 表示利息按复利计算 要用指数公式设年复利为r 则e^8r=2 推出r=8.7% 结果二 题目 【题目】CompoundInterest.Afortunatealgebrastudentwantstoinvest $1,000,000 inatar-freefund.Ifshehopestodoubleherinvestmentin 8 years,Whatinterestratemushsheseekifheraccountiscompoundedmonthly?Giveyouranswerinp...
On February 17, 2011, Washington Savings Bank offered 1.5% interest compounded monthly. Assuming your average balance is $2000, what is your expected dividend earned in a year? How much interest is earned and what is the effective rate? Solution First, we gather the information P=$2000,r=...
When the interest is compounded after each of the 12 months, it is called monthly compound interest. Basic Mathematical Formula: I = Compound interest. P = Original principal. r = Interest rate in percentage per year. n = Time in years. Mathematical Example: A borrower took a $5000 loan ...
Assuming both savers earn 4 percent annual returns (and interest is compounded monthly), here’s how much they will have at the end of 40 years.Saves $10,000 a year for 10 years, then nothing for 30 yearsSaves $2,500 a year for 40 years $406,430.65 $245,847.96...
1Compound Interest(1)A deposit of 550 is made in a savings account that pays an annual interest rate of 1\% compounded monthly. What is the balance after 11 years?(2)How large a deposit, at 5\% interest compounded continuously, must be made to obtain a balance of 10,000 in 15 years...
For instance, if the compounding frequency is monthly, your $100,000 deposit has grown to $164,701, netting a total of $64,701 in interest after 10 years. To reiterate from earlier, the more frequently that interest is compounded, the more interest is earned, as our compound interest mode...
Let’s say you want to know how much compound interest $10,000 can earn in a year in a high-interest savings account at an annual interest rate of 2% that is compounded monthly. If you plug these values into the formula, you will get the following: P = $10,000 r = 0.02 (2%, ...
Interest calculation for 5 years Future investment value $6,416.79 Total interest earned $1,416.79 Initial balance$5,000.00 Yearly rate → Compounded rate 5% 5.12% All-time rate of return (RoR)28.34% Time needed to double investment13 years, 11 months monthly yearly Yearly breakdown YearInteres...
That has the interest rate in there (0.1025 = 10.25%), but we should subtract the extra 1: (1+(r/n))n− 1 = 0.1025 =10.25% And so the formula is: Effective Annual Rate = (1+(r/n))n− 1 Example: what rate do you get when the ad says "6% compounded monthly"?
Test the Calculator for Daily, Monthly, and Yearly Compounding Periods: An Example Suppose you want to invest $10000 for ten years somewhere. You have three options: Bank "X" is providing 5% interest compounded yearly. Bank "Y" is offering 5% interest compounded monthly. Bank "Z" is giving...