Deposit $21,000 in a savings account paying 5.5% simple interest how much interest will you earn in 18months
We can start by using the formula for simple interest:
I = Prt
where I is the interest earned, P is the principal (initial amount), r is the interest rate as a decimal, and t is the time in years.
In this case, P = $21,000, r = 0.055 (since the interest rate is 5.5%), and t = 1.5 years (since 18 months is half of a year). So we can plug in these values and solve for I:
I = 21000 x 0.055 x 1.5
I = $1732.50
Therefore, you will earn $1732.50 in interest after 18 months.
Suppose you want $700,000 for retirement in 25yrs account earns 9% how much do you need to deposit each month
To calculate the monthly deposit required to accumulate $700,000 in 25 years at an interest rate of 9%, we can use the following formula for the future value of an annuity:
FV = Pmt x (((1 + r)^n - 1) / r)
Where:
- FV is the future value of the annuity (in this case, $700,000)
- Pmt is the monthly payment we want to find
- r is the monthly interest rate (9% divided by 12 months)
- n is the total number of payments (25 years multiplied by 12 months per year)
So plugging in the values, we get:
$700,000 = Pmt x (((1 + 0.09/12)^(25*12) - 1) / (0.09/12))
Simplifying:
$700,000 = Pmt x (352.8158)
Pmt = $700,000 / 352.8158
Pmt = $1,983.69 (rounded to the nearest cent)
Therefore, you would need to deposit approximately $1,983.69 per month for 25 years at an interest rate of 9% to accumulate $700,000 for retirement.
Suppose you want $700,000 for retirement in 25yrs account earns 9% how much do you need to deposit each month
How much interest will you earn
To calculate the total interest that will be earned on the monthly deposits of $1,983.69 over the 25-year period, we can use the formula for the future value of an annuity again.
The total deposit made can be calculated by multiplying the monthly deposit amount by the total number of payments, which is 25 years multiplied by 12 months per year, giving $1,983.69 x (25 x 12) = $595,107.
The interest earned on this investment can be calculated by subtracting the principal (total deposit made) from the future value of the investment after 25 years, which was given as $700,000.
So, the interest earned would be:
Interest earned = Future value - Principal
Interest earned = $700,000 - $595,107
Interest earned = $104,893
Therefore, the total interest earned over the 25-year period would be $104,893.
You deposit $600 each month into account earning 4% compounded monthly how much do you have in 12 years
To determine the future value of monthly deposits of $600 into an account earning 4% compounded monthly over 12 years, we can use the formula for the future value of an annuity:
FV = Pmt x (((1 + r/n)^(n*t) - 1)/(r/n))
Where:
- FV is the future value of the annuity
- Pmt is the monthly payment (in this case, $600)
- r is the annual interest rate (4%)
- n is the number of times the interest is compounded in a year, which is 12 for monthly compounding
- t is the total time period in years (12 years)
Plugging in the values, we get:
FV = $600 x (((1 + 0.04/12)^(12*12) - 1)/(0.04/12))
FV = $600 x 193.7583
FV = $116,254.98 (rounded to the nearest cent)
Therefore, the amount you will have in the account after 12 years is $116,254.98.
You deposit $600 each month into account earning 4% compounded monthly how much do you have in 12 years
How much money will you put into the account
How much interest will you earn
You will put a total of $600 x 12 x 12 = $86,400 into the account over 12 years.
To calculate the interest earned, we can subtract the total deposits from the future value of the investment.
Future value = $116,254.98 (from the previous calculation)
Total deposits = $600 x 12 x 12 = $86,400
Interest earned = Future value - Total deposits
Interest earned = $116,254.98 - $86,400
Interest earned = $29,854.98
Therefore, the interest earned over 12 years would be $29,854.98.
To calculate the amount of interest earned on a savings account over a specific period, you can use the simple interest formula:
Simple Interest = Principal x Interest Rate x Time
In this case, the principal (P) is $21,000, the interest rate (R) is 5.5% (or 0.055 in decimal form), and the time (T) is 18 months.
First, convert the interest rate from a percentage to a decimal by dividing it by 100:
Interest Rate (R) = 5.5% / 100 = 0.055
Next, substitute the values into the simple interest formula:
Simple Interest = $21,000 x 0.055 x 18
Multiply $21,000 by 0.055, and then multiply the result by 18:
Simple Interest = $21,000 x 0.055 x 18
Simple Interest = $20,790
Therefore, you will earn $20,790 in interest over an 18-month period.