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Theo Posted on Aug 14, 2012

How to calculate continuously compounded interest

Problem: you deposit 10000 and keep it there for 5 years. It pays 8% annual interest compounded continuously. Calculate the future value at the end of 5 years.

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  • Posted on Aug 14, 2012
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4 Related Answers

David Shaub

  • 2994 Answers
  • Posted on Aug 08, 2009

SOURCE: what are the keys to calculate mtg. payment when

100000+8%= Divide by 360

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Anonymous

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  • Posted on Aug 26, 2009

SOURCE: TI 89: unnecessary Overflow

Mine said 1271.216 What hardware you have?
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k24674

  • 8093 Answers
  • Posted on Oct 13, 2009

SOURCE: How do I calculate compound interest?

Hello,
You enter that as follows
3500[x] (1.064)[Y to the x]3.5 [=] . Note that [x] is the multiplication sign.
Hope it helps.

kakima

  • 102366 Answers
  • Posted on Nov 20, 2010

SOURCE: Where is the e button on a ti-30xa calculator? To

e^x is the 2nd function of the LN key, second from the right on the top row of the keyboard.

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0helpful
2answers

What is the method of calculating interest rate for fixed deposit?

Fixed deposit calculations can be done by both manual and automatic methods.Now let us figure out the fd calculation in both ways:
1.) Manual Calculation Technique: It is the conventional process to know your Fixed deposit interest calculation. The formula for manual fd calculation is used as below:

Where,A = Final Amount
P = Principal Amount (initial investment)
r = Annual Nominal Interest Rate (as a decimal, not in percentage)
n = Number of times the interest is compounded per year
t = Number of years

2.) Online Calculator Technique: Nowadays online FD calculator is very amazing technique and it is a very useful online tool that helps you to easily calculate your Fixed deposit return. Online FD calculators uses simple technique in which you need to put your amount, tenure, interest rate and can get accurate results instantly. You can easily calculate and compare the interest receivable by changing the deposit amount.
Mar 18, 2018 • Finance
0helpful
1answer

Compound interest

Well if you started with zero in the first year, then $164494, of which $30000 was yours, so earnings are 134494.

If you started with $1000, then $181943, of which $31000 was yours, so earnings are $150943
0helpful
1answer

We are not obtaining the correct answer when computing the I/Y. The problem is N=30, PV=-500, PMT = 0, FV = 10000. We are getting 126.01

Since you didn't specify what result you were expecting, I can only guess at what you want.

The answer is correct assuming 12 periods per year. To have 500 increase to 10000 in 30 months, you need an annual interest rate of 126%. For a more realistic result, set the number of periods per year to one by pressing 1 SHIFT [P/YR] then repeat the calculation. This will produce 10.5% for the annual interest rate.

Alternatively, if the interest is compounded monthly, specify 360 for N. This will give a value closer to 10% annually, compounded monthly.
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1answer

I cannot get the textbook answer (online calculators are also the same as textbook answer) using my sharp calculator EL738: Monthly payment for $184,500 at 6.75% interest semi annually, for 5 year term...

Your result is for the 6.75% interest compounded monthly. The problem states that the interest is compounded semiannually. This makes a difference in the effective interest rate.

A 6.75% APR compounded semiannually gives an effective interest rate of about 6.864%:
Press 2 , 6 . 7 5 2nd >EFF

Converting this to APR gives about 6.657%:
Press 1 2 , 6 . 8 6 4 2nd >APR

If you use 6.657 for the interest rate instead of 6.75 you should get the correct result.
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1answer

What buttons do I push in what order to figure compound interset. if I start with$15,000.00 at 6% interset for 25 years. I am on a texas instrument ba 2 plus

If the interest is compounded monthly:

2nd [CLR TVM] (clear any existing results)
1 5 0 0 0 _/- PV (present value, negative because you're paying it out)
6 I/Y (annual interest rate)
25 2nd [*P/Y] N (25 years)
CPT FV (compute future value, see 66,974.55)

If the interest is compounded annually:

2nd [CLR TVM] (clear any existing results)
1 5 0 0 0 _/- PV (present value, negative because you're paying it out)
6 I/Y (annual interest rate)
2nd [P/Y] 1 ENTER 2nd [QUIT] (one compounding period per year)
25 N (25 years)
CPT FV (compute future value, see 64,378.96)
0helpful
1answer

How long will it take wendys $4000 investment,

Press APPS and select the Finance app. Select the TVM Solver.

Enter -4000 for PV, 0 for PMT, 6000 for FV. Be sure you use the (-) key for PV, not the - key. P/V and C/Y should both be 1 and PMT should be END.

If you want 5% annual interest compounded month, enter 5/12 for I%. If you simply want 5% annual interest, enter 5 for I%. Go to N and press ALPHA ENTER to see the number of periods (months or years according to what you entered earlier in this paragraph).
3helpful
4answers

I want the excel compound interest formula

=10000*(1+0.96)^12
=10000*(1+0.10)^18
=10000*(1+0.10)^24
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