Calculate Interest Rate & Earnings: $150 -> $275 in 8yrs

  • Thread starter Thread starter sp00ky
  • Start date Start date
  • Tags Tags
    Interest
AI Thread Summary
To calculate the interest rate needed for $150 to grow to $275 in 8 years with semi-annual compounding, the formula for compound interest can be applied. The interest rate can be derived from the equation A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the interest rate, n is the number of compounding periods per year, and t is the number of years. Additionally, for a $1000 deposit at 6% interest, the difference in earnings between semi-annual and annual compounding can be calculated using the same formula. The results will show how compounding frequency affects total returns. Understanding these calculations is essential for maximizing investment growth over time.
sp00ky
Messages
22
Reaction score
0
1. Determine the interest rate for a principal of $150 to amount to $275 in 8 years with interest compounded semi-annually.

2. Suppose you deposit $1000 in an investment account for one year at 6%. How much more money will you receice if the investment is:
compounded semi-annually instead of annually.
 
Physics news on Phys.org
Use the equation

I = P( 1 + r/n ) ^nt
 
sp00ky, please read the posting rules for this section in the sticky at the top of the threads in this section.
 

Thread 'Errors and significant figures'

I multiplied the values first without the error limit. Got 19.38. rounded it off to 2 significant figures since the given data has 2 significant figures. So = 19. For error I used the above formula. It comes out about 1.48. Now my question is. Should I write the answer as 19±1.5 (rounding 1.48 to 2 significant figures) OR should I write it as 19±1. So in short, should the error have same number of significant figures as the mean value or should it have the same number of decimal places as...
View full post »
Thread 'Calculation of Tensile Forces in Piston-Type Water-Lifting Devices at Elevated Locations'

Thread 'Calculation of Tensile Forces in Piston-Type Water-Lifting Devices at Elevated Locations'

Figure 1 Overall Structure Diagram Figure 2: Top view of the piston when it is cylindrical A circular opening is created at a height of 5 meters above the water surface. Inside this opening is a sleeve-type piston with a cross-sectional area of 1 square meter. The piston is pulled to the right at a constant speed. The pulling force is（Figure 2）： F = ρshg = 1000 × 1 × 5 × 10 = 50,000 N. Figure 3: Modifying the structure to incorporate a fixed internal piston When I modify the piston...
View full post »
Thread 'A cylinder connected to a hanging mass'

Thread 'A cylinder connected to a hanging mass'

Let's declare that for the cylinder, mass = M = 10 kg Radius = R = 4 m For the wall and the floor, Friction coeff = ##\mu## = 0.5 For the hanging mass, mass = m = 11 kg First, we divide the force according to their respective plane (x and y thing, correct me if I'm wrong) and according to which, cylinder or the hanging mass, they're working on. Force on the hanging mass $$mg - T = ma$$ Force(Cylinder) on y $$N_f + f_w - Mg = 0$$ Force(Cylinder) on x $$T + f_f - N_w = Ma$$ There's also...
View full post »

Similar threads

MHB Find the maximum amount of the equal annual withdrawal
Replies
3
Views
2K
Compound Interest Homework: Amy vs Bob
Replies
8
Views
3K
Projected Cash Flows: Present and Future Worth Calculations
Replies
12
Views
2K
MHB Compound Interest: $50000 Invested for 3 Years at 7.75%
Replies
3
Views
1K
Simple Interest for two investments
Replies
9
Views
2K
MHB Mortgage Calc: Calculate Payment, Owed & Interest Breakdown
Replies
1
Views
2K
MHB Simple Interest Investment: How Long Will It Take to Grow $550,000 to $720,000?
Replies
1
Views
1K
MHB with Finance Questions - Clarification with Steps
Replies
1
Views
3K
Simple Interest: Number of Years
Replies
2
Views
2K
Calculating Simple Interest Rate on a $2,000 Savings Account
Replies
1
Views
2K

Hot Threads

Recent Insights

Back
Top