![]() ![]() ![]() For example if you rounded log(2) to 0.301 and log(1.005) to 0.00217, then your final answer would have been about 11.577 years. Your answer to Requirement 2 indicates that, in relation rate is 16, the accountant suggests. ![]() Note that your answer may come out slightly differently if you had evaluated the logs to decimals and rounded during your calculations, but your answer should be close. It will take about 11.581 years for the account to double in value. And the Account Value is Calculate as: Account Value Initial Amount of Investment + Interest. Since interest is being paid monthly, each month, we will earn \frac=N Approximating this to a decimal Here, the formula to calculate interest is as follows: Interest Initial Amount of Investment Interest Rate (r) Interest 1000015. The 3% interest is an annual percentage rate (APR) – the total interest to be paid during the year. Usually, if someone loans money to another person in present value, and are promised to be paid back in future value, then the. Multiply your step 2 result by your principal balance (P). Raise the resulting figure to the power of the number of years multiplied by 12. Suppose that we deposit $1000 in a bank account offering 3% interest, compounded monthly. Money is not free to borrow We will refer to money in terms of present value P, which is an amount of money at the present time, and future value F, which is an amount of money in the future. Monthly compound interest means that our interest is compounded 12 times per year: Divide your annual interest rate (decimal) by 12 and then add one to it. ![]()
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