How much is 1000 worth after
12 months
using an annual interest rate of 7.2%
compounded monthly?
Calculate effective interest rate There are 12 months in a year
Convert interest rate to monthly
Monthly Interest = Annual Interest Rate Compounding Periods
Monthly Interest = 0.072 12
Monthly Interest = 0.006
Calculate Accumulated Balance A = B(1 + i)n Plugging in our values A = 1000(1 + 0.006)
12 A = 1000(1.006)
12 A = 1000(1.0744241677219)
A =
1,074.42 How much interest was earned? Interest Earned = Accum. Value - Start Balance Plug in our values Interest Earned = 1,074.42 - 1,000.00
Interest Earned =
74.42 See Answer A = 1,074.42 74.42
What is the Answer?
A = 1,074.42 74.42
How does the Compound Interest Accumulated Balance Calculator work?
Free Compound Interest Accumulated Balance Calculator - Given an interest rate per annum compounded annually (i), semi-annually, quarterly, monthly, semi-monthly, weekly, and daily, this calculates the accumulated balance after (n) periods
What 1 formula is used for the Compound Interest Accumulated Balance Calculator?
What 5 concepts are covered in the Compound Interest Accumulated Balance Calculator?
compound interest the interest you earn on principal and interestnt compound interest accumulated balance interest rate the proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositor principal The amount borrowed on a loan, before interest is charged yield How much an investment returns in terms of interest rate
Example calculations for the Compound Interest Accumulated Balance Calculator Compound Interest Accumulated Balance Calculator Video VIDEO
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