Compound interest is the result of reinvesting interest so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
Questions tagged [compound-interest]
195 questions
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Compound interest rate
Given annual interest rate r_ann and n compounds per year, why do we use the formula
(1+r_ann/n)^tn
rather than (1+r)^tn given r = (1+r_ann)^(1/n) - 1.
Henry Wang
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2
votes
2 answers
Calculating interest on a daily base, compounded monthly
I am a programmer knowing next to nothing to interest calculation and I have to determine a formula to calculate interest on a daily basis compounded monthly. The main problem here is that the interest rate may change at any point in time (we are…
Réal Forté
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2
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2 answers
Is there a formula for the future value of a series of monthly deposits with interest compounded weekly?
I have searched and not seen (or maybe just didn't recognize it as applying to) a future value formula for the following:
Deposit a fixed amount ($100 or whatever) each month into an account/investment.
Compound interest is applied weekly (or it…
Long John Dough
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2
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1 answer
Excel formula for amortization schedulefor a loan with daily compound interest
Can anyone help me. I'm after an amortization schedule for loans that has a daily compound interest added with a monthly repayment. I've calculated the monthly repayment but I can't find an excel formula that provides me with a breakdown of…
Karen
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2
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1 answer
Compound Interest Calculation
In __________ years a sum will double at 5% per annum compound interest.
Options given are:
a. 15 years 3 months
b. 14 years 2 months
c. 14 years 3 months
d. 15 years 2 months
The way to solve is as below:
A = P [1+(r/100)]^n (^ - raised to the…
JitendraK
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2
votes
2 answers
How frequently is interest compounded when estimating market returns
I'd like to be able to estimate the value of my portfolio over time given annual contributions and an expected return of a certain percentage. I found several simple online interest calculators, but each of these requires me to set the frequency at…
nuggethead
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How are compound interest factor tables calculated?
In my economics class, our textbook provides these massive tables for looking up these compound interest factors to put in worth equations. They look something like this:
There has to be some formula for deriving these factors, right? Where are…
Carson McManus
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1
vote
2 answers
Formula for continuously increasing interest rate
Is there a standardised formula for continuously increasing interest rate of an investment? Given a compound interest formula of A = P(1 + (r/n)^nt), is there a way to combine daily compounding with a continuously increasing interest rate that…
user125687
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1
vote
1 answer
Calculating the compounding interest formula for an overnight rate
I am VERY NEW to all this industry, so I apologize in advance if my question is too simple.
I am given the formula to calculate the compounded rate, where Ri is the effective rate and k is the compounding period.
If I understood correctly from this…
Anakin Skywalker
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0
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1 answer
Average Yearly Return: is this correct?
If an initial investment of 100'000 results in 200'000 after 10 years (including the initial investment), is it correct to say that the investment has returned on average 10% per year?
I am guessing the answer is 'no' due to compounding returns…
manu3d
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0
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Is there a general term for the increased impact of annual management fees, on investments with a positive return?
In conversations with friends, they are often very surprised at the net difference between the total of two investments with identical positive returns, which can be attributed to different annual management fees.
While compound interest…
Sebastian Zolg
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Compound interest, no dividends, no share price change
I've read about compounding and understand dividend reinvestment, but still not sure about compounding on stocks with no dividends.
Is this scenario correct?
Share purchase price = $ 10.00
$ 0 dividend stock
Share sell price one year later = $…
user3552459
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-1
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How rate of interest affects inflation rate
Suppose i invest 100000 today.and suppose rate of interest is 12% and inflation rate is 6% . so what amount i will get after 2 year at the rate of 12% and inflation of 6%.
In other word you can say,how the rate of interest affects inflation…
dev_02
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