0
What else can I help you with?
What are the differences in returns between daily and monthly compounding for an investment with a fixed interest rate?
The main difference between daily and monthly compounding for an investment with a fixed interest rate is the frequency at which the interest is calculated and added to the investment. Daily compounding results in slightly higher returns compared to monthly compounding because interest is calculated more frequently, allowing for the compounding effect to occur more often.
A loan at 6 percent interest over 5 years What is the total output?
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.
What is the difference in coupon frequency between a monthly CD and a CD that reaches maturity?
The difference in coupon frequency between a monthly CD and a CD that reaches maturity is that a monthly CD pays interest monthly, while a CD that reaches maturity pays interest only when it matures.
How can I calculate the monthly interest rate on a loan or investment?
To calculate the monthly interest rate on a loan or investment, divide the annual interest rate by 12. This will give you the monthly interest rate that is applied to the loan or investment.
What is the difference in frequency between monthly and semi-annual CD coupon payments?
The difference in frequency between monthly and semi-annual CD coupon payments is that monthly payments occur once a month, while semi-annual payments occur twice a year.
How many years will it take an investment to triple at 8 percent interest compounded monthly?
At 8% per month, compounded, it will take just 1.2 years. However, with monthly interest such that its annual compounded equivalent is 8% (roughly 0.64% each month), it will take 14.27 years.
What is the rate on an investment that tripples 2435 in 5 years. Assume interest is compounded monthly?
It doesn't matter how much the original investment is. If it triples in 5 yearswith monthly compounding, then the interest rate is 22.175% (rounded)
Interest on maturity is better or monthly interest?
If you need a monthly income then obviously a monthly income is better. If the monthly interest is not withdrawn then it makes no difference because the annual interest rate is usually equal to the compounded monthly rate.
Which yields more 8 percent apr compounded monthly or 8.5 percent compounded semi-annual?
8% compounded monthly is equivalent to an annual rate of approx 152% . 8.5% compounded six monthly is equivalent to "only" 17.72% so the first is clearly larger.
What are the differences in returns between daily and monthly compounding for an investment with a fixed interest rate?
The main difference between daily and monthly compounding for an investment with a fixed interest rate is the frequency at which the interest is calculated and added to the investment. Daily compounding results in slightly higher returns compared to monthly compounding because interest is calculated more frequently, allowing for the compounding effect to occur more often.
Which is the better investment 8.5 percent compounded monthly or 9.1 percent compounded annually?
Answer: 9.1% At 8.5% principal grows by (1+(.085/12))^12 = 1.0884 times in one year which is less than investing at 9.1%.
What is the monthly interest rate of and annual 10 percent rate?
It is 0.833... recurring % if the interest is simple, or compounded annually. If compounded monthly, it is approx 0.797 %
What will 10000 be worth in 30 years at 5 percent?
compounded annually--$43,219 compounded quarterly--$44,402 compounded monthly-- $44,677 compounded daily--$44,812
A loan at 6 percent interest over 5 years What is the total output?
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.
How do you determine the rate for one month for compounded interest?
On monthly compounding, the monthly rate is one twelfth of the annual rate. Example if it is 6% annual, compounded monthly, that is 0.5% per month.
One thousand dollars is invested at 12 percent interest compounded monthly determine how much the investment is worth after 1 year?
1000 x (1.01)12 = $1126.83
What is the interest rate of 13.75 percent compounded monthly is equivalent to a daily compounded interest rate?
14.651
