how much interest will i earn

how much interest will i earn

2 hours ago 2
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To help you calculate how much interest you will earn, I need a bit more information:

  1. Principal amount (the initial amount of money you are investing or saving)
  2. Interest rate (annual percentage rate, e.g., 5%)
  3. Time period (how long you will keep the money invested or saved)
  4. Type of interest (simple interest or compound interest)
  5. If compound interest, compounding frequency (e.g., yearly, quarterly, monthly)

How to Calculate Interest

Simple Interest Formula

Interest=P×r×t\text{Interest}=P\times r\times tInterest=P×r×t

  • PPP = principal amount
  • rrr = annual interest rate (in decimal)
  • ttt = time in years

Compound Interest Formula

A=P×(1+rn)ntA=P\times \left(1+\frac{r}{n}\right)^{nt}A=P×(1+nr​)nt

  • AAA = amount after interest
  • PPP = principal amount
  • rrr = annual interest rate (in decimal)
  • nnn = number of times interest applied per year
  • ttt = time in years

Interest earned = A−PA-PA−P

Example

If you invest $1,000 at 5% annual interest for 3 years:

  • Simple interest:
    1000×0.05×3=1501000\times 0.05\times 3=1501000×0.05×3=150 dollars

  • Compound interest (compounded yearly):
    1000×(1+0.051)1×3=1000×1.157625=1157.631000\times (1+\frac{0.05}{1})^{1\times 3}=1000\times 1.157625=1157.631000×(1+10.05​)1×3=1000×1.157625=1157.63
    Interest earned = 1157.63−1000=157.631157.63-1000=157.631157.63−1000=157.63 dollars

Please provide your specific details, and I can calculate the exact interest for you!

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