The interest from an investment is calculated through the equation,
I = P x i
Where I is the interest, P is the principal amount and i is the
interest rate.
P = I / i
Substituting the known values,
P = ($9.99) / (0.018/100) =
$55,500
The nearest value to the obtained value above is $55,555. Thus, the
answer to this item is the first choice.
APR.
If you don' pay off your balance every month, you will pay interest on the remaining amount. The amount of interest is the APR, annual percentage rate. So, if you are going to be paying interest you want to make sure this rate is as low as possible!
Answer:
a. 7.24%
b. 7.82%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $756.22
Future value = $1,000
NPER = 4 years
PMT = $0
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the answer of part A is 7.24%
For Part B
Given that,
Present value = $740
Future value = $1,000
NPER = 4 years
PMT = $0
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the answer of part A is 7.82%
Answer:
rate = 1.3085%
Amount after 10 years with no withdrawals nor deposits : 2,277.66
Explanation:
the formula for compound interest is as follow:
![Principal \: (1+ r)^{time} = Amount](https://tex.z-dn.net/?f=Principal%20%5C%3A%20%281%2B%20r%29%5E%7Btime%7D%20%3D%20Amount)
We plug our values and solve for rate:
![2,000 \: (1+ r)^{1} = 2,026.17](https://tex.z-dn.net/?f=2%2C000%20%5C%3A%20%281%2B%20r%29%5E%7B1%7D%20%3D%202%2C026.17)
r = 2,026.17 /2,000 - 1 = 0.013085 = 1.3085%
in ten years we have:
![2,000\: (1+ 0.013085)^{10} = Amount](https://tex.z-dn.net/?f=2%2C000%5C%3A%20%281%2B%200.013085%29%5E%7B10%7D%20%3D%20Amount)
Amount = 2,277.66
I don’t understand what you are trying to say or what your question is?