- Home
- Search
- Settings
- Top Contributors
- Help Center
Example of compound interest?
Answer:
Let's keep the match simple. Assume 12% annual interest compounded monthly.
12%/12 months = 1% per month
Works the same if you borrow or if you invest and earn.
Month Value Interest Owe
1 $100 1% x 100 = $1 $100 + $1 = $101
2 $101 1% x 101 = $1.01 $101 + $1.01 = $102.01
3 $102.01 1% x 102.01 = 1.02 $102.01 + $1.02 = $103.03
4 $103.03 1% x 103.03 = 1.03 $103.03 + $1.03 = $104.06
5 $104.06 1% x 104.06 = 1.04 $104.06 + $1.04 = $105.10
6 $105.10 1% x 105.10 = 1.05 $105.10 + $1.05 = $106.15
12%/12 months = 1% per month
Works the same if you borrow or if you invest and earn.
Month Value Interest Owe
1 $100 1% x 100 = $1 $100 + $1 = $101
2 $101 1% x 101 = $1.01 $101 + $1.01 = $102.01
3 $102.01 1% x 102.01 = 1.02 $102.01 + $1.02 = $103.03
4 $103.03 1% x 103.03 = 1.03 $103.03 + $1.03 = $104.06
5 $104.06 1% x 104.06 = 1.04 $104.06 + $1.04 = $105.10
6 $105.10 1% x 105.10 = 1.05 $105.10 + $1.05 = $106.15
First answer by ID1272283733.
Last edit by ID1272283733.
Question popularity:
0
[recommend question].
What countries can the chimpanzee live on?
In: Chimpanzees
Answer it!
How so you spell graduate's?
Answer it!
» more