2007-05-28 08:28:09 · 8 answers · asked by L 2 in Business & Finance ➔ Investing
4,317.85 if annually
http://www.moneychimp.com/calculator/compound_interest_calculator.htm
2007-05-28 08:34:29 · answer #1 · answered by Lt_Cmdr_USN 4 · 1⤊ 0⤋
The question is somewhat puzzling. i do no longer understand what 'regular volume' is touching on. i'm going to pass over that in the time of my calculation. i assume that the pastime is compounded consistent with annum. So it truly is 8% consistent with annum. For compound pastime, we use this formulation: A = P ( a million + R/one hundred )^n ...the place A = very final volume P = the quantity invested, referred to as the crucial R = fee (without the %) n = sort of circumstances the quantity is compounded. So to your question, you're looking A. the different values are already given: P = 20,000 R = 8 n = a million (on account that your investment is compounded as quickly as a twelve months) So permit's enter the fee to get the respond: A = P ( a million + R/one hundred )^n = 20,000 ( a million + 8/one hundred )^a million = 20,000 ( a million + 0.08 ) = 20,000 ( a million.08 ) = 21600 So the respond is C. $21,600.
2016-10-09 00:18:34 · answer #2 · answered by ? 4 · 0⤊ 0⤋
P(1 + i)^n
Compounded daily: $2,000 (1 + 0.08/365)^365x10 = $4,450.69
Compounded weekly should be $4,448.34
Compounded monthly should be $4,439.28
Compounded annually should be $4317.85
NOTE: Results include Principal + Interest!!!!
Observe - Rule of 72 states that your money approximately doubles in 72/8 = 9 years. (8 is the interest.) So roughly, after 9 years, your $2,000 becomes $4,000! - again principal and interest in there together.
2007-05-28 08:51:16 · answer #3 · answered by siagnon 3 · 0⤊ 0⤋
The formula for continuous compounding is the following:
Pe^rt
where P=the principal amount to invest
e= the natural log value which is 2.7183
r=interest rate
t=time
2000(2.7183)^(08*10)
2000(2.225553)
$4451.11 is the answer.
2007-05-28 09:59:17 · answer #4 · answered by nickfromct 3 · 0⤊ 0⤋
There are many investment calculators out there. Using this one:
http://www.banksite.com/calc/savings.cgi?amt=2000&dep=0&cmp=Daily&int=8.0&yrs=10
Final Savings Balance: $ 4450.69
Initial Investment plus Monthly Contributions: $ 2000.00
Total Interest Earned: $ 2450.69
2007-05-28 08:38:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Dang I knew this one! Nickfrom is right...
2007-05-28 14:53:17 · answer #6 · answered by tiescore 6 · 0⤊ 0⤋
3600
http://www.learningwave.com/lwonline/percent/interest.html
2007-05-28 09:03:57 · answer #7 · answered by Anonymous · 0⤊ 0⤋
lol compounded continuously??? do u mean monthly? if so it will be $21,200
2007-05-28 08:34:17 · answer #8 · answered by dunitanime 2 · 0⤊ 2⤋