Questions tagged [compound-interest]
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.
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Can I go from a stated annual rate compounded annually to a semestral effective interest rate?
If the compounding period is one year, so in 6 months you haven't earned any interests yet, therefore you wouldn't be able to use the formula for the equivalent rate, one should use the formula for ...
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Interest rate question
I'm having a little trouble figuring this out. Suppose I took out a loan with the following terms:
Loan Amount: 1,000
Interest Rate (APR): 10%
Compound Frequency: Monthly (12 compounding periods)
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Recurring deposit interest calculation compounding period rule in India
Is there any RBI guideline or rule or guideline available for Recurring Deposits interest calculation compounding period for Indian Banks. I find it different for different banks in India and the ...
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Continuous compounding in practice
A common explanation for the mathematical constant e (2.71828...) is that it is the factor by which an investment would grow at 100% interest rate over a period if it is continuously compounded.
In ...
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