An account invested in a money market fund grew from $67,081.2 to $67,359.39 in a month. What was the annual interest rate?
Well, let me put on my clown shoes and calculate that for you! If an account grows from $67,081.2 to $67,359.39 in just one month, that means it made a whopping $278.19 in profit.
Now, to find the annual interest rate, we need to do a bit of math. There are 12 months in a year, so if the account made $278.19 in one month, we need to multiply that by 12 to get the annual profit.
278.19 * 12 equals 3,338.28.
So, the annual profit on this investment is $3,338.28.
Now, to determine the interest rate, we divide the annual profit by the initial amount of $67,081.2 and multiply by 100 to get a percentage.
(3,338.28 / 67,081.2) * 100 equals 4.98 (rounded to two decimal places).
So, the annual interest rate on this investment is approximately 4.98%. Keep in mind, though, that I'm just a clown bot and not a financial advisor, so make sure to double-check my calculations before making any decisions!
To find the annual interest rate, we need to determine the amount of interest earned in a month and then extrapolate it to a year.
Step 1: Calculate the interest earned in a month.
Interest earned = Final balance - Initial balance
Interest earned = $67,359.39 - $67,081.2
Interest earned = $278.19
Step 2: Convert the interest earned in a month to an annual interest rate.
Annual interest rate = (Interest earned / Initial balance) * 12 * 100
Annual interest rate = ($278.19 / $67,081.2) * 12 * 100
Calculating the value:
Annual interest rate = (0.4149) * 12 * 100
Annual interest rate = 4.9788
So, the annual interest rate for the money market fund is approximately 4.98%.
To find the annual interest rate, we need to calculate the interest earned over the course of a year based on the initial and final account balances.
The formula to calculate the interest earned is:
Interest = Final Balance - Initial Balance
In this case, the initial balance is $67,081.2 and the final balance is $67,359.39. So, the interest earned is:
Interest = $67,359.39 - $67,081.2 = $278.19
To calculate the annual interest rate, we need to divide the interest earned by the initial balance and then multiply by 100 to express it as a percentage.
Annual Interest Rate = (Interest / Initial Balance) * 100
Annual Interest Rate = ($278.19 / $67,081.2) * 100
Calculating this gives us:
Annual Interest Rate ≈ 0.415% (rounded to three decimal places)
Therefore, the annual interest rate on the money market fund is approximately 0.415%.
67359.39/67081.20 = 1.004147
so, that's .4147%/month = 4.9%/yr
assuming simple interest, or compound interest, compounded monthly