9.5% semi-annually = 19.9025% annually.After 10 years 1200*(1.199025)^10 = 7369.93
It will be 726.
No. If the account is earning interest the current amount should be greater than the initial deposit.
You will have 1903.737 dollars in your account at the end of 13 years. The year wise end balance will be:756816.48881.798952.3421028.531110.8121199.6771295.6511399.3031511.2471632.1471762.7191903.737This is under the assumption that you don't deposit any fresh funds into your account and initial 700 dollars + the accumulated interest is all that is available in the account.
2500 * 1.06^3 = 2977.54
He should deposit 17017.82
It will be 726.
(1.035)16 = 1.73398604 $500 ===> $866.99 (rounded)
$11,573.02 if you deposit at the beginning of the quarter or $11,444.27 if you deposit at the end of the quarter
No. If the account is earning interest the current amount should be greater than the initial deposit.
You will have 1903.737 dollars in your account at the end of 13 years. The year wise end balance will be:756816.48881.798952.3421028.531110.8121199.6771295.6511399.3031511.2471632.1471762.7191903.737This is under the assumption that you don't deposit any fresh funds into your account and initial 700 dollars + the accumulated interest is all that is available in the account.
2500 * 1.06^3 = 2977.54
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6% compounded annually is equivalent to an annual rate of 12.36%. To increase, at 12.36% annually for 3 years, to 10000, the initial deposit must be 7049.61
When a financial product pays compounded interest the investor earns interest on interest earned. For example, when $1,000 is invested at a compounded rate of 5 percent the principal balance of the investment would increase to $1,050 at the end of year one assuming annual compounding of interest. In year two the investor would receive interest at 5 percent on $1,050 for an interest payment of $52.50 in year two. Money left to accumulate at compounded interest can grow tremendously over time (see Compounded Earnings: Making Your Money Work for You).Banks offer compounded interest on savings accounts and certificates of deposit. Another method of obtaining a compounded rate of interest can be achieved by buying US Treasury issued zero coupon bonds which offer the advantage of long dated paper and the ability to know upfront what the compounded rate of return will be (see Zero Coupon Bonds Explained: Locking in Long Term Profits).
He should deposit 17017.82
Yes & No. Some Banks usually pay interest that can be compounded every quarter on most fixed deposit plans. But, this is not applicable to all banks. Most banks still pay only simple interest on all deposit schemes.
Yes & No. Some Banks usually pay interest that can be compounded every quarter on most fixed deposit plans. But, this is not applicable to all banks. Most banks still pay only simple interest on all deposit schemes.