How Much Interest On Interest Will Be Earned Help

How much interest could £100 million earn?

It depends on many things such as the time, type of savings account or instrument, type of interest rate - fixed or variable, etc.Here are some example:You put your money in account paying 1.5% interest for one year. At the end of the year you will have earned an interest of 1,510,355.59 and total value of your savings would be 101,510,355.59.Just for comparison, if you put the same amount of money in a saving account for one year paying 2.5% interest, at the end of the period you will have an interest income of 2,528,845.70, and your savings value will be 102,528,845.70.If you put the same amount of money for three years term, at the end of the third year you will earn an interest of 4,599,846.53, with total value of your savings equal to 104,599,846.53.Hopefully, the examples would grasp the importance of the need for additional details.If the interest rate is fixed, than you could easily calculated the interest that is expected to be earned. But if the interest rate is variable, then in the long run it would be a bit difficult to know for sure how much interest you would earn. More over, the difference between simple interest and compounding interest could be substantial if the period is longer.In addition, keep in mind that in some countries you pay taxes on interest income, and the interest earned should be decreased accordingly.

How much interest will you earn if you invest $60k compounded at a 10% yearly benefit, after 7.2 years?

Without any calculator, you can expect to double your money at that rate for that time.  It's called "the rule of 72" and it's a basic in money deposits.  When your APR times your years invested equals 72, you will roughly double your money.  So 12 years at 6%, or 4 years at 18%, or 9 years at 8% will all roughly double your money.  Why is a rough approximation useful?  Taxes.  Taxes will whittle your final results much more than the slight differences from different times and rates according to the rule of 72.

How much interest would you make per year with $20 million in the bank?

It depends on the interest rate and type of account you chose. If you chose a CD, you would get a higher rate of interest, but you couldn’t withdraw the money for a year.According to BankRate, the best CD rates for a one year CD are about 1.40% for a one year CD. So $280,000 on $20 million.Best CD Rates – Compare CD Rates at Bankrate.comNow, if you really had $20 million, you might find something better by shopping around: that’s a big slug of cash.One thing to consider is that with $20 million, you should probably spread it around a bit. Each account is insured by FDIC up to $250,000. So with $20 million in a single CD, if the bank goes under, you lose $19,750,000. Unlikely, but you got to think of it. You could put your money in Goldman Sachs or Wells Fargo with the knowledge that if one of those (or a few others, like Bank of America, Citi, etc) go under, the economy is tanking anyway, so they probably would be backstopped by the federal government (“too big to fail”).If you put your money into a money market account, you’ll get around 1%, or $200,000 per year.Best Money Market Rates & Accounts - May 2017 - MagnifyMoneyIf, however, you really have $20 million (unlikely), I’d strongly urge you to find a good financial adviser and not rely on what random people on Quora say. I mean, a lot here will be correct, some incorrect, but more importantly, we don’t know your situation: when you’ll need the money, what your tax situation is like, what other money you’ll have coming and going, etc.

If I invest 1 lakh in ppf per year for 15 years, how much interest will I get on its maturity i.e after 15 years?

You get Rs. 31,17,278/- on maturity assuming the PPF interest rate of 8.7% per annum. There are numerous sites which you can use to calculate your PPF balance if you want to play around with the numbers (or) use Excel with simple interest calculation formula :-)I have assumed annual compounding, but I think PPF calculates interest using simple interest monthly and deposits the interest amount annually. How to earn maximum interest from your PPF account - NDTV

How do stocks earn compound interest?

When talking about interest, we’re talking about the right to have a share in something. If you buy a stock, you have an interest in the company — you have a piece of ownership. When someone lends you money, they have a right to get that money back. They have a legal share in what you earn going forward, since you’ve agreed to repay the loan.In terms of debt, interest is basically the surcharge for getting access to capital. If you borrow money, you’re accessing capital you wouldn’t normally be able to get. Whoever provides you with that capital wants to make money on the deal, and so charges interest.You can earn interest, though, by letting your own money be used by others. Investing in stocks, or putting your money in a savings account, are examples of ways that you offer up money to be used by others. In return for letting others use your capital, you are paid interest.There are two types of interest:Simple interest is interest paid on the principal capital onlyCompound interest is paid on the principal, plus the accumulating interestBasically, compound interest is how your money makes money on your behalf. If you invest, it means you not only earn a return on the initial amount of your investment, but also earn return on your earnings.Earning compound interest is a much better prospect, and you can really see how time matters when you look at it from this standpoint. If you have Rs.10,000, and you put it in an S&P index fund with annualized gains of about 7% per year, compounded quarterly, and you let it grow for 30 years, this is what you would end up with:A = 10,000 (1+(0.0700/4))^(4)(30) ≈ Rs.80,191.83That’s not bad, for just letting your money sit there, earning on your behalf. If you let it go for 40 years, though, you end up with about Rs.160,511.76. That’s twice as much, just for letting your money sit for an extra 10 years. You can see what a difference compound interest over time makes!To understand the power of compounding watch the following video:Thank you!!

How much interest will I get from 10 lakh rupees in a bank deposit?

Hi,Here question is incomplete. Need further information to know the interest likeTenure - How many monthsInterest frequency - yearly or half yearly or quarterlyInterest rateIf you are aware of all these this information. This app will help you to calculate interest earned.Interest Calculators - Android Apps on Google Play

How much I can earn by investing 500 - 1000 every month on a mutual fund?

When investing in mutual funds, the investment horizon (3-5 years) should always be long for higher profit. You won’t make much profit in short-term. Returns on mutual fund investment depends on a lot of factors like stock market trend, NAV, compound interest etc.Suppose you invest Rs 1000 for 3 years in a mutual fundTotal invested amount - Rs 36,000Assuming rate of return at 12%, you would get an end value of Rs 43,508. (no. Of times the amount gets rolled-over)Keep these things in mind in order to make money through mutual fund investing:Invest for Long Term -If an investor invests for a long-term, he gets the benefit of compounding. When money is invested for a longer period of time, interest on interest is earned, thereby making the money compound into a large sum.The above table shows that a monthly investment of Rs. 10,000 for 10 years results into a future value of Rs. 24,92,923. If an individual remains invested for 5 more years, i.e. 15 years, the value becomes almost double - Rs. 56,52,071. Investing for a period of 20 years results in a future value of Rs. 1,17,34,741.So, a monthly investment of Rs. 10,000 can help you become a crorepati in 20 years.Dividend Income -Mutual fund companies distribute earnings to its shareholders in the form of dividends. This payout is usually on a quarterly basis, from the interest generated by the fund’s investments.Goal-Based Mutual Fund Investment -A lot of people park their money in mutual funds in order to meet certain goals at different life stages.- If an individual’s goals are 1-3 years away, he should invest in debt-funds. Floating rate funds is the best option in a rising interest rate scenario, while in a falling interest rate scenario, income/bond funds are considered to be a good investment.- If the goals are 3-6 years away, one should invest in a combination of debt and equity based funds.- If the goals are 8-10 years away, equity investment is the best option. Equity has the potential to beat inflation and provide exceptional returns over a longer period of time.