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compound interest

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Compound interest 2019-05-28
From Kenneth:

Is compound interest on $1.00 for one year the same as simple interest on $1.00 for one year?

Compound interest would be $1.01, and I believe the same amount would be the same at simple interest.

Answered by Penny Nom.
Compound interest 2013-05-10
From Kyla:
I am doing correspondents and cannot figure out how to explain the solution to this question, I do not understand how they came to this answer and need it explained step by step so I can complete the following questions in this unit, please help!!! Calculating compound Interest

Johnny invest $800 that pays 8% compounded quarterly for 5 years. How much is the investment worth at the end of the 5th year?

Answered by Penny Nom.
25 billion dollars 2011-08-26
From Bill:
If you have $25billion dollars, what would the value of this amount become if you inflated it at 4% per year for 55 years?=C2=A0 My TVM calculator will not go this high.
Answered by Penny Nom.
A loan 2010-06-16
From melody:
LOAN: 1000
TERM: 2 years
INTEREST: 2% (per month)

what is he formula of solving this and what is the answer..

Answered by Robert Dawson.
Compound interest 2010-06-01
From Kenneth:
Hello: I have a question regarding the following compound interest and future value calculation.

Year 1 P + rP equals balance after the first year.
Year 2 (P + rP) + r(P + rP) equals balance after the second year.
Year 3 ? equals balance after the third year.

This question is in two parts.

1. What would follow for year three?

2. I know that a pattern will develop. What will it be so that I can determine the extended pattern for following years ?

Answered by Penny Nom.
Compound interest 2010-04-21
From Kenneth:
Let's say that an investor has $1000.00 to invest for 3 years at a rate of 5% at compound interest. Here is the formula:

M = 1000(1 + 0.05)^3 = $1157.62

If I want to change 1000(1 + 0.05) to (1000 + 0.05*1000) three times in a calculation instead of using (1 +0.05)^3, how would this be done?

I cannot get (1000 + 0.05*1000) + (1000 + 0.05*1000) + (1000 + 0.05*1000) to equal $1157.62.

I know that 1000(1.05)(1.05(1.05) will produce the answer, but I want to try to use the above non-factored calculation.

Answered by Penny Nom.
Compound interest 2010-02-27
From Allison:
Have $1000.00 in saving account compound annual interest rate 6% please calculate what it is worth 3 years, 5 years and 10 years?
Answered by Tyler Wood.
Saving for his daughter's education 2009-01-15
From George:
To save for his daughter’s university education at the end of each month Mr McLean sets aside £50 in a savings scheme paying 10% p.a. compounded monthly. He begins saving when his daughter is 3 years old. How much will he have saved by the time his daughter is 18?
Answered by Harley Weston.
Compound interest 2009-01-02
From maninder:
at what rate % compound interest per annum will be rs. 640 amount to rs. 774.40 in 2 years.
Answered by Penny Nom.
Interest compounded monthly 2008-12-13
From ameeta:
joanna invest 500 dollars. She received 6 percent interest compounded monthly. how much interest did she earn with this investment after 3 years. the answer i calculated out to be was 90 dollars but could you please show me the steps.
Answered by Robert Dawson and Penny Nom.
A 5% raise each year for 20 years 2008-09-13
From marie:
In his first year, a math teacher earned 32,000. Each successive year, he earned a 5% raise. How much did he earn in his 20th year? What were his total earnings over the 20-year period
Answered by Stephen La Rocque.
Interest compounded daily for 6 months 2008-06-18
From Cheryl:
Compounded interest daily on cd.....$1,000.00 at 2.53% for 6 months. How much will this CD earn?
Answered by Penny Nom.
Compound interest 2007-07-11
From Michelle:
Present Value of $1500 to be paid in Year 7, with an interest rate of 12%
Answered by Stephen La Rocque.
Paying off a debt 2007-04-26
From Ema:
How would you enter a formula in Excel for the following:

payment is applied to principal balance, then 8% interest compounded daily, then .25% monthly penalty

Answered by Stephen La Rocque and Penny Nom.
Compound interest 2007-03-20
From cos:
how much would $2000 be at the end of 1 yr. at a daily compounded interest rate of 3% be? the 3% is not yearly but daily. thank you very much for your help!!
Answered by Penny Nom.
Compound daily interest 2007-01-27
From Sharon:
calculate the return on $20,000 for 3 years at an interest rate of 8% that compounds daily.
Answered by Stephen La Rocque.
Compound interest 2006-06-01
From Kerem:

Question: Quing deposits $40 at the end of each month into a savings account. If the money earns 4% annum compounded monthly, how much money is in the account at the end of 24 months?


Calculate the present value of an annuity, if $150 payments are to be made monthly for 4 years and the interest rate is 9% per annum compounded monthly.

Answered by Natasha Glydon and Penny Nom.
Compound Interest Formula and explanation 2006-04-14
From Michelle:
Currently there is $10,000 in a customer's savings account that earns 4% interest compounded annually. How much interest will the customer earn in a year?
Answered by Stephen La Rocque.
$24,000 investment at 5% daily interest 2005-12-21
From Gary:
My friend is a professional day trader on the stock exchange. He claims that he can take a $24,000 investment at 5% daily interest and at the end of 3 years have approximately 34 million dollars. Can this be correct?
Answered by Penny Nom.
Future value 2002-06-27
From Susan:
If one were to invest $115 a month for 20 years and expect a 4% annual return, what is the value of this money in 20 years?
Answered by Leeanne Boehm.
Compound interest 2001-04-11
From A student:
What principal will grow to $1367.10 after 1 year at 10% compounded semi-annually?
Answered by Claude Tardif and Penny Nom.
Interest compounded daily 2000-04-03
From Debbie Bracken:
How do I figure interest that is compounded daily? 8% compounded daily.
Answered by Penny nom.
Compounding continuously 2000-03-21
From Gina:
You deposit $1500 in an account that pays 6.5% annual interest, compounded continuously. Find the balance after 10 years.

I'm not sure what to do with the "compounded continuously" part.

Answered by Penny Nom.
Compound Interest 1999-07-01
From Kim Palmer:
In early 1997, my son borrowed $4831 at 7.5%. He has made 30 monthly payments of $130 each. He is now in a position to pay off the balance. What is his remaining principal?
Answered by Penny Nom.



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