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Mrs.baxter deposits $2000 in an account that earns 5% simple interest. How much is Mrs.Baxter’s investment worth after 8 yrs?
A : the Total
P : the amount you started with
i : interest rate as a decimal (5÷100= 0.05)
n : the investment period in years
A= P(1+i.n)
A= 2000(1+(0.05×8))
A= 2800
What else can I help you with?
What is taxable investment?
An investment, whose returns are taxable can be termed as taxable investment. For ex: In India, the interest earned on bank deposits are taxable. Hence depositing money in fixed deposits can be considered as a taxable investment
Is fixed deposit an investment?
Yes. Any action where our money earns us some more money is an investment. In case of fixed deposits, banks pay us a fixed rate of interest on our deposits which is an income that our money is earning for us. So, definitely it is an investment.
Do all deposits gain interest?
Not all deposits gain interest. Deposits to a savings account in a bank usually earn interest. Security deposits sometimes earn interest depending on where you reside. Deposits into investments will earn interest and the rate depends on the state of the economy and the financial markets.
Calculate yearly interest on investments with deposits in Excel?
To calculate yearly interest on investments with deposits in Excel, use the Compound Interest Formula: =P * (1 + r/n)^(n*t) Where: P is the principal amount (initial investment), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, t is the number of years. If the investment has regular deposits, you can also use the Future Value of a Series formula: =FV(rate, nper, pmt, [pv], [type]) Where: rate is the interest rate per period, nper is the number of periods, pmt is the payment (deposit) made each period.
Difference between investment and commercial bank?
Investment banks provide financial services that are geared toward raising capital such as underwriting, issuance of securities, assisting in Mergers and Acquisitions, and investment management. Unlike commercial banks, they do not take deposits. While investment banks make their money by charging fees for their services, commercial banks earn their money by charging higher interest rates on loans than what they pay for people's deposits.
What are public deposits?
Public deposits refer to funds that individuals or entities deposit with a financial institution, typically a bank, for safekeeping or investment purposes. These deposits are often available for withdrawal by the depositor and can include savings accounts, fixed deposits, and recurring deposits. Institutions use these funds to finance loans and other investments, while offering interest to depositors. Public deposits are generally considered a safe investment, as they are often insured up to a certain limit by government regulations.
What is an Investment Interest calculator?
An investment interest calculator will calculate the amount of interest that you will have to pay on an investment on a home, car, or other type of big expense.
Can fees paid to a broker be classified as investment interest expenses?
No. Broker Fees are investment expenses but are not investment interest expenses.
Can an inherited gas royalty interest qualify as an economic interest under the IRS rules?
According to IRS Pub 535, page 33, column 1, "You have an economic interest if BOTH the following apply: 1) you have acquired by investment any interest in mineral deposits or standing timer, AND 2) You have a legal right to income from the extraction of the mineral or cutting of the timber to which you must look for a return of your capital investment.
What is the future value of monthly deposits formula and how can it be used to calculate the growth of an investment over time?
The future value of monthly deposits formula calculates the total value of an investment that receives regular monthly contributions over time. It takes into account the monthly deposit amount, the interest rate, and the number of months the investment is held for. By using this formula, investors can predict how much their investment will grow over time by consistently adding money to it each month.
What does low risk investment mean?
Investment which contain lower level of exposure to risk as compared to other investments like Bank deposits or Treasury notes etc. With that it usually also has low level of interest as compared to other products available
How do banks make money when it pays interest on deposits?
They charge a much higher interest on loans than they pay on deposits.
