How do i calculate compound interest?
Simply... If the APR = 12.5 then to use in this context we do... 1+(12.5/100) Then we can work out the Annual Balances 5000.00*1.125=5625.00 (1 year) 5625.00*1.125=6328.13 (2 year) 6328.00*1.125=7119.14 (3 year) This is done properly by... Deposit * 1+(APR/100) to the power of years. i.e. 5000*1.125cubed (cubed=to the power 3, as you said 3 years) = 5000*1.423 = 7119.14 To work out the half yearly intrest paid, we work out the 6month Rate of Intrest, this is the sqare root of the APR, i.e. the square root of 1.125 = 1.061 Therefore after 6 months... 5000.00*1.061=5303.30 (6 months) 5303.30*1.061=5625.00 (1 year) To to clarify if the Annual Rate of Intrest = 12.5% The 6 month Rate of intrest = 6.066% To calculate, (square root of (APR/100))*100 To calculate solely the intrest rather than the end of term balances Where I have added 1 to the APR/100, don't i.e 5000*0.125= 625 625 is simply the Intrest recieved after one year at 12.5% APR I hope this helps. Btw if you have found a savings rate of 12.5% congradulations!
How do I calculate simple interest?
You have to know a few things before you start 1. The principal, or amount you are paying or receiving interest on 2. The interest rate (usually expressed as say 12% per annum, meaning you calculate 12% of the principal for each year) 3. The length of time you need to calculate interest for. Simple example: I want to calculate 12% annual interest on $100 for one year exactly 100 * .12 = $12.00 interest For other time periods: I want to calculate 12% interest on $100 for 180 days: First calculate the periodic interest rate: 12% divided by 365 days in the year = .0329 (I rounded to 4 decimals) - remember to move the decimal place two to the left before using in further calculations. Then take the periodic interest rate .000329 * $100 * 180 days and get $5.92 interest. This assumes you make a single payment after 180 days. If you paid half of it in 90 days, you would calculate the interest on $100 for the first 90 days, then the interest on $50 for the next 90 days, and so on.
How do I calculate the nominal interest rate?
While talking about compound interest, whatever annual interest rate that is charged is called Nominal interest rate. However, if interest is monthly/quarterly/daily compounded whatever annual rate that is practically coming into effect would be different (slightly higher than the nominal rate). That rate is called Effective Rate of interest. For example, if nominal rate is r = 12% and if interest is monthly compounded, the monthly rate would be 12/12 = 1%. And so, a sum of $100 will in 12 months be 100(1+r/12)^12 = 100(1.01)^12 = $112.68. Thus had the interest been annual, a rate equivalent to the above would be 12.68%. Thus the effective rate of interest is e = 12.68%. Note that nominal rate is r = 12%. Formula e = (1+r/12)^12 - 1 in the case of monthly compounding. e = (1+r/4)^4 - 1 in the case of quarterly compounding. e = (1+r/2)^2 - 1 in the case of half-yearly compounding. e = (1+r/365)^365 - 1 in the case of daily compounding. e = e^r - 1 in the case of continuous compounding.
How is interest calculated on an FD?
The FD interest rate calculation varies from one bank to another. In some banks, the interest is compounded quarterly, while others compound the interest on the monthly, and half-yearly basis. There are some other financial institutions which compound interest on an annual basis.Before I help you with the calculation, let me tell you how the four interest calculation pattern affects your investment. Let's assume the interest offered is 8%, just for the calculations.Compounded Monthly: The total interest rate offered is divided into 12 equal parts for monthly calculation. After every month an interest on the principal amount according to 8/12% p.a will be added to your initial investment, the next interest calculation will using the new amount.Compounded Quarterly: The same happens in this case, but the offered interest will be divided into 4 equal parts. After every quarter, an interest on the principal amount according to 8/4% p.a will be added.Compounded Half-Yearly: The interest rate is divided into two equal parts, and an interest according to 8/2% p.a is added to the initial investment after every 6 months.Compounded Annually: This is usually for the investment of more than one year. An annual interest is added to the initial investment and the next interest calculation takes place using the new figures.Most banks calculate interest on a quarterly basis by using online FD interest calculator, but NBFCs can follow different interest calculation pattern.Now, just for clarity, let's make it more clear using calculations. On an investment amount of Rs 25000 at an interest rate of 8% p.a for one year, the interest you get is:Rs 2075- MonthlyRs 2061- QuarterlyRs 2040 - Half-YearlyRs 2000- Annually
How do you calculate a smart loan,bullet loan, and Interest-only loan?
With the given info 25,000,000$ Loan 6.8% APR For a smart loan it says a mortgage payment is made every 2 weeks for half of the monthly mortgage. (Note: Using 30 year traditional mortgage) For the bullet loan it just says there is a 5 year bullet. The mortgage is for 30 years. For the interest-only it says 10 years with an APR of 3.9% Any help is much appreciated.
How do I calculate the interest rate per annum on $30,000. @ 7.240%?
Interest rate or payment? If you are looking to calculate a payment, its going to depend on the term of the loan. This calculator is set up to calculate payments...I set it up assuming a 30 year term (home loan), but you can change the term to suit what you need. http://www.bankrate.com/brm/auto-loan-ca... If you are trying to figure out how much interest per year, it is 7.24% * $30,000 = $2,176. That number will vary a little depending on how it is compounded.
How do I calculate FD interest rate in India?
Calculation of the FD rates are decided by Banks depending upon a few factors such as RBI’s BPS, inflation, recession etc. But you as a customer can’t calculate FD interest rate. You can calculate the interest on your investment but the rates are decided by Banks.If you are trying to calculate the interest of FD then the following formula can be used for the purpose:A = P (1 + r/n)ntHere A is the amount that you would get, P is the principal that you invested, r is the interest rate, n is the compounding (annual, monthly, quarterly or half yearly) and t is the total time period that is assigned for the FD to mature.There are two more ways that could be useful to you, one is using the spreadsheet and the other is using the online FD calculator. The easiest method is to use the online calculator. You simply have to input your rate of interest, your tenure and the principal amount that you want to invest.
How do I calculate compound interest?
Compound interest can be calculated in Excel using following formula.A = P(1+R)^nA = Accumulated amountP = Principal (Original amount)R = Interest rate for the periodn = no. of periods.Coming to your question, what those blogs probably meant was when you keep the money in growing assets without taking out money for long term, then money increases by leaps and bounds. One of the good example is Public Provident Fund scheme or PPF.Following table will show you how Rs. 150,000 (maximum allowable now) invested every year on beginning of financial year i.e. 1st April will grow to Rs. 45.95 L in 15 years or Rs. 78.73 lakhs in 20 years or Rs. 1.28 crores in 25 years. This is all due to power of compounding.
How do I calculate interest on a loan I made so someone?
If you are you simple interest and are simply charging them 4% on the total amount, then you would charge them as follows 2,300 * .04 = $92.00 in interest So they would have to pay you back $2,392 in total If you were calculating the loan similar to how a bank might calculate a mortgage, then technical each time they paid 200.00, some of that money would be going to principal and the following month, they would owe less in principal than the previous month. As such you would have to do an amortization schedule. It might look like this (total interest paid would be about ($49.21)
What is the best way for calculating interest rate for fixed deposit?
There are two ways of calculating interest on your fixed deposit, i.e. Simple Interest and Compound Interest, depending on the kind of FD plan you choose. In case of a simple interest calculation, assume that you have deposited Rs.1 lakh in a Fixed Deposit for a 3 year tenor at an interest rate of 10% per annum. The interest rates will be calculated annually and hence will be Rs.10,000 per year, i.e. Rs.30,000 in 3 years and hence you will earn a total of Rs.1,30, 000 (Rs.1 lakh + Rs.30,000) at maturity.In case of a Compound Interest calculation, the interest earned will be added to the principal amount for further calculation of interest. For the same amount, interest rate and tenor, the calculation will be something like this:1st Year- Interest earned- Rs.10,000 on Rs.1 lakh2nd Year-(Rs.1,00,000 + Rs.10,000 will be the principal)- Interest Earned will be Rs.11,0003rd Year- (Rs.1,10,000 + Rs.11,000 will be the principal)- Interest Earned will be Rs.12,100The total interest that you earn will be Rs.33,100 and the maturity value will be Rs.1,33,100/-The payout increases whenever interest is compounded. Compounding schemes can be half-yearly, quarterly or annually depending on your preference. You can use an online FD calculator for working out the interest that you earn and the total amount at maturity. This tool will help you assess the interest and maturity amount in a jiffy.Simply choose your customer category (whether you are a senior citizen or not), deposit type (cumulative/non-cumulative) and fixed deposit amount. Choose the tenor and rate of interest along with the frequency of payouts. You will instantly be shown the amount received at maturity along with the interest that you earn.