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203
This would definitely depend on the bank, the investment plan and how long you intend to leave it in the bank. For example, if you invest it in a safety account at the bank, and agree not to touch the capital - i.e. just have the interest paid out, say, every 3 months - you could possibly get as high as 5% apr. that's 250,000 per year.Of course, you could get higher interest in a high risk investment plan, or lower interest in a government guaranteed retirement fund.However, in my dream of winning the lottery, I am fairly conservative and prefer to invest it with an annual option of retaining my investment - so it is not tied up for 10 years if I want to buy a house. This type of investment usually bring about 5% in Europe.
Over what period of time? It obviously depends on how long the money is earning interest, whether the interest rate is the annual interest rate, and whether it is compounded at intermediate periods during the year. For the purposes of this question it is probably reasonable to assume you are interested in how much interest it earns over a period of 1 year without compounding.$2,500,000,000 ($2.5 Billion), at the ANNUAL rate of 2.5%, for the period of one year, equals an amount of $62,500,000The formula for interest isInterest = Principal x Rate x TimeIf you are investing for under a year your time needs to be expressed as a decimal or a fraction. If the APR (annual percentage rate) is 2.5% then the effective Monthly percentage rate would be 2.5%/12 = 0.208333% or 5/24 %. At that rate you would earn about $5,208,333 in one month. If the APR is 2.5% and is compounded monthly, the formula would beInterest = Principal x ((1 + APR/12)n-1) = Principal x ((1.00208)n-1)where "n" is the number of months the principal is left to earn interest.By that formula the interest would be1 month $5. 208,3332 months $10,427,5173 months $15,657,5754 months $20,898,5285 months $26,150,4006 months $31,413,2137 months $36,686,9918 months $41,971,7559 months $47,267,53010 months $52,574,33711 months $57,892,20012 months $63,221,142 (1 year)The difference between the 1 year interest this way and the original $62,500,000 quoted earlier is the effect of compounding it monthly.
Amount to Deposit (P) = ? Time (N) = 15 months or 1.25 years Rate of Interest (R) = 5 Interest Earned = 200 Formula for Interest = P * N * R / 100 Rearranging the formula we get: P = Interest * 100 / N * R = (200 * 100) / 1.25 * 5 = 20000 / 6.25 = 3200 If they want to earn 200 interest they must deposit 3200 as the amount for the certificate of deposit.
5000 x 1.03 ^ (11/12) = your total interested earned
3 months
find the interest on $4000 at 3.5% annual interest for 1 year 6 months
It means that the interest is paid out every three months (quarter year). That means that the interest paid out after 3 months is earning interest for the remaining nine months. The quarterly interest rate is such that this compounding is taken into account for the "headline" annual rate. As a result, if the quarterly interest is taken out, then the total interest earned in a year will be slightly less than the quoted annual rate.
1/12th of 5% because there are 12 months in a year. ANSWER:- 1/60th per cent, which is the same as 0.01667 of the amount invested.
200
Multiply the monthly interest rate by the number of months is a year to calculate the annual interest rate: 2% x 12mo = 24%
232.04 = one year 77.35 = 4 months
14 months
If John continues putting $45 into an investment account at 5% interest per annum. He would have earned $567.We can calculate this by taking his deposits ($45) and multiplying it by the amount of deposits (he does it monthly, so 12 months). This means that at the end of the year, his base savings is $540. Now, we need to add on the interest he'll earn by saving for the year. $540 x 0.05 = $27. Between his savings and interest ($540 + $27), he has earned $567.
(15 x 6.75)/3 ie 33.75
203
Take the annual interest rate, divide it by 2 and multiply it by the amount you invested or borrowed.