Approximately 7 years. The general rule is to divide 70 by the interest rate to get an approximation of how long it will take to double.
If the interest is compounded annual you will have $194.88 after 7 years, and $214.37 after 8 years. Though if interest is compounded more regularly (ie. monthly or daily) this will grow at a slightly faster rate.
Invest at an amount of 200000 at a bank that offers an interest rate of 7,6%p.a Compounded annually for a period of 3 years
Assuming that is 7.25% APR, then, as it's compound interest: amount = 1000 x (1 + 7.25%)^2 = 1000 x (1 + 7.25/100)^2 = 1000 x 1.0725^2 ≈ 1150.26
Also, I have to use the formula: Use the compound interest formula A = P (1 + i)n, where A is the accumulated amount, P is the principal, i is the interest rate per year, and n is the number of years.
Rs 1600.
The effect of compound interest is that interest is earned on the accrued interest, as well as the principal amount.
Interest alone would be 4.871463646 times the amount of the principle.
Your going to fail the test.
$44,440.71
Suppose the amount invested (or borrowed) is K, Suppose the rate of interest is R% annually, Suppose the amount accrues interest for Y years. Then the interest I is 100*K[(1 + R/100)^Y - 1]
3
Invest at an amount of 200000 at a bank that offers an interest rate of 7,6%p.a Compounded annually for a period of 3 years
5,132.33^10
13468.02
About 23 cents if and only if the minimum balance remains at that amount for 1 year and the bank pays compound interest annually.
Also, I have to use the formula: Use the compound interest formula A = P (1 + i)n, where A is the accumulated amount, P is the principal, i is the interest rate per year, and n is the number of years.
100 x (1.05)4 = $121.55
Assuming that is 7.25% APR, then, as it's compound interest: amount = 1000 x (1 + 7.25%)^2 = 1000 x (1 + 7.25/100)^2 = 1000 x 1.0725^2 ≈ 1150.26