100 would be the interest if calculated with simple rate and the principal amount is 1250.
amount=P(1+R/100)^n
amount=P(1+4/100)^2
P+CI=P(104/100)^2
CI=P(204*4/100^2)
102=P(204*4/100^2)
P=102/(204*4/100^2)
THEREFORE SI=PTR/100
SI=100.........
arun
How much would $200 invested at 6% interest compounded annually be worth after 5 years?
267.65
How much would $300 invested at 4% interest compounded monthly be worth after 8 years?
412.92
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.
12.248%
12%
You can find that type of calculator on most large banks websites such as Bank of America or Citi. They allow you to see what your money would be like after a certain time with a certain interest rates.
simple interst is when you earn interest from your principal but compound interest is when you earn interest from your principal as well as from your previous interest
PAYDAY Express offers an interest rate of about ten percent annually, though it is known to be more if certain criteria, such as age or limitations, apply.
The time value of money, in a nutshell, is how much money would be worth in the future if you invested it at a certain rate. If you have $1 now and can invest for 5% (compounded annually), you would have $1.05 at the end of the year (Future Value) Can also be how much you need now to reach a certain amount in the future. If you need $1 in a year and can invest for 5% (compounded annually), you would need about 95 cents now (Present Value)
At 10% simple interest (no compounding), $100 becomes $150 after 5 years. At 10% compounded annually, $100 is $146.41 at the end of 4 years, and $161.05 at the end of 5 years. If 10% simple interest is paid continuously throughout the year without compounding, then the $146.41 hits $150 at 89 days into the 5th year.
A compound interest calculator is used for determining how much your invested money can make you in it's lifetime of being invested. This is useful in telling you how much a certain amount of money will make you when it matures.
The basic equation for compounded interest is: FV=PV(1+i)^nt FV=future value PV=present value i=interest compounded per term n=number of times compounded per year t=number of years For this situation: FV=? PV=8000 i=.08 n=1 t=7 Plugging the numbers into the equations gives you FV=8000(1+.08)^7 Solving gives you the amount of 13710.59 A way to roughly check your answer is to use the rule of 72. The rule of 72 is a method of seeing how long it would take to double ones money at a certain interest percent. The interest is 8% so divide 72 by 8 and you get 9. So at 8 percent it would take about 9 years to double your money. Since we only had 7 years, it makes sense that we did not double our money, but we fairly close to doing so, meaning that our answer is viable. This is only a way to roughly check the answer.
Canadian calculators are based on the laws of that country and the way interest is calculated on monies. This can be a great savings compared to American laws. IE: Interest can only be compounded twice anually and must always be in arrears, whereas in America the interest is accrued monthly and never in arrears.
Simple: 160 + (1.6 x 4 x 2) = 172.80 Compound: 160 x (1.04)2 = 173.06