interest

A credit plan charges interest rate of 36% compounded monthly. Find the effective rate. Calculate Monthly Nominal Rate: Monthly Nominal Rate = Annual Rate / 12 months per year Monthly Nominal Rate = 36%/12 Monthly Nominal Rate = 3% Since there are 12 months in a year, we compound 12 times to...

An investment of $200 is now valued at $315. Assuming continuous compounding has occurred for 6 years, approximately what interest rate is needed to be for this to be possible? Using our continuous compounding calculator solving for interest rate, we get: I = 7.57%

Ravi deposits $500 into an account that pays simple interest at a rate of 4% per year. How much interest will he be paid in the first 4 years? The formula for interest using simple interest is: I = Prt where P = Principal, r = interest, and t = time. We're given P = 500, r =0.04, and t = 4. So...

You deposit $150 into an account that yields 2% interest compounded quarterly. How much money will you have after 5 years? 2% per year compounded quarterly equals 2/4 = 0.5% per quarter. 5 years * 4 quarter per year = 20 quarters of compounding. Using our balance calculator, we get $165.73 in...

You put $5500 in a bond fund which has an annual yield of 4.8%. How much interest will be earned in 23 years? Build the accumulation of principal. We multiply 5,500 times 1.048 raised to the 23rd power. Future Value = 5,500 (1.048)^23 Future Value =5,500(2.93974392046) Future Value = 16,168.59...

Annuity that pays 6.6% compounded monthly. If $950 is deposited into this annuity every month, how much is in the account after 7 years? How much of this is interest? Let's assume payments are made at the end of each month, since the problem does not state it. We have an annuity immediate...

Last year, Miguel had $10,000 to invest. He invested some of it in an account that paid 5% simple interest per year, and he invested the rest in an account that paid 10% simple interest per year. After one year, he received a total of $800 in interest. How much did he invest in each...

Match each variable with a variable by placing the correct letter on each line. a) principal b) interest c) interest rate d) term/time 2 years 1.5% $995 $29.85 Principal is $995 Interest is $29.85 since 995 * .0.15 * 2 = 29.85 Interest rate is 1.5% Term/time is 2 years

You split $1,500 between two savings accounts. Account A pays 5% annual interest and Account B pays 4% annual interest. After one year, you have earned a total of $69.50 in interest. How much money did you invest in each account. Explain. Let a be the amount you invest in Account A. So this...

Larry Mitchell invested part of his $31,000 advance at 6% annual simple interest and the rest at 7% annual simple interest. If the total yearly interest from both accounts was $2,090, find the amount invested at each rate. Let x be the amount invested at 6%. Then 31000 - x is invested at 7%...

You have $250,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 5.4% annually and Fund B pays 7.9% annually. How should you divide your money between fund Fund A and Fund B to produce an annual interest...