What is the nominal rate of interest if the real interest rate is 4% and expected inflation is 3%?
107390
7% ARE YOU KIDDING ME?\n\nInflation makes everything go down in value compared to the money you have today. My $100 today buys me 100 shmounces (I made up a new unit to make the math easy) of gold. In one year with 3% inflation it will take $103 to buy those same 100 schmounces of gold.\n\nIf you are borrowing the money then the cost is 4% and you get the benefit of not losing the 3% that you would have lost if you waited, so 4%-3%= 1% nominal. You pay the 4% in interest rates and the 3% in the amount it didn't go down in value because you got to enjoy the fruits right now.\n\nIf you are saving the money then it is 4%-3%=1%. You are paid the 4% interest rate which buys you 3% less when you do spend it.\n\nAs you can see inflation helps you in one case and hurts you in the other but the nominal rate is still the same. Weird huh?\n\nIts all about the math.
246324
The simplest way is to multily by 12.  While that doesn't give the exact rate, it is generally close enough.  For deposits, (savings accounts or money markets) rates are usually expressed in APY (annual percentage yield).  So a money market paying 6% APY would have a 0.5% monthly yield, if interest is compounded monthly.\n\nFor loans, most lenders calculate interest by assuming that each month has 30 days and each year has 360 days.  That makes each month have the same interest.  To get the actual annual rate, you would divide the monthly rate by the number of days in the month (31 for march) and multiply by the number of days in the year (365).  But the result is so close that it's usually good enough to just multiply by 12.
580744
Calculating the Effective Annual Rate\n\nBasic Financial Calculator Suppose that you have determined that the monthly rate of return on a certain investment is 0.21307991 (%). That's the monthly rate. You can multipy that number by 12 to get the nominal annual rate of about 2.55696%. But suppose you would like to know the effective annual rate (EAR)?\n\nThe effective annual rate is the annual interest rate that would yield the same result if interest was compounded annually rather than monthly.\n\nThe formula for calculating the equivalent annual rate from a monthly rate is\n1 + EAR = (1 + MR)^12\nor\nEAR = ((1 + MR)^12) - 1\nwhere EAR is the effective annual rate and MR is the monthly rate and both numbers are expressed as absolute decimals (rather than as percentages).\nPrepare the calculator\n\nIn order to work through the following example, you should prepare the calculator by first tapping the CLR key and then tap\n0 . 2 1 3 0 7 9 9 1 Enter +\nAn Example\n\nSuppose that you have calculated a monthly interest rate of 0.21307991% using your basic financial calculator. The first step in converting this to an effective annual percentage rate is to convert the monthly rate from a percentage to an absolute rate. Divide the percentage rate by 100 to convert to an absolute (fractional) rate. Tap\n1 0 0 /\nThe number that is displayed on the screen should now be 0.0021307991. The next step is to add one and then raise the result to the 12th power. Tap\n1 + 1 2 y^x\nThe number is now 1.0258714. Subtract one to get the absolute (fractional) rate, and then multiply by 100 to convert the fractional rate to a percentage. Tap\n1 - 1 0 0 X\nThe answer is 2.58714%.
549854
the rate is the stated rate such as 4%.  The yield is higher rate because of compounding.  Let's say $100 @ 4% per year is $4.00 income. The same 4% rate compounded monthly is higher because the intrest income is added at the end of each month. Let's say $100 @ 4% monthly is 1st month is $100 x 4% = $4.00 / 12 months is $100.33 at the end of the first month so month 2 is $100.33 x 4% = / 12 months is $100.66. and so on...  So yield is interest on top of interest.
1043517
Use the compound interest formula:\n\nA(t) = A (1+r/n)^(nt)  where A(t) is final value, A is starting value, r is interest rate, n is number of times interest is counted in a year, t is number of years. In this case we want to figure r.  Thus,\n1690 = 1255 (1+ r/4)^(2.75)(4)\n1690/1255 = (1+ r/4)^(11)\n1.3466 = (1+ r/4)^(11)\n(1.3466)^(1/11) = (1+ r/4)\n1.0274 = (1+ r/4)\n.0274 = r/4\nr = .1096 or 10.96%
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17.7% annually,\nAssuming there are 365 days in a year,\ndaily interest rate = 17.7%/365=..04849%\nThe answer is A.
73773
100 Rs become Rs 200 in 8 years if we add 12.5 Rs every year. So rate of interest should be 12.5 %
384122
Choose x to stand for the amount invested at 10%.  The remaining amount would be 15,000 - x.  It's invested at 6%\n\nChange the percents to decimals, multiply them by their amounts, and add them up to get the total interest:\n\n.10(x) + .06(15000 - x) = 1260\n\nDistribute the .06: .10x + 900 - .06x = 1260\n\nCombine like terms: .04x + 900 = 1260\n\nSubtract 900 from both sides:  .04x = 360\n\nDivide both sides by .04: x = 9000\n\nFind the other number:  15000-9000=6000\n\nSo, $9000 at 10% and $6000 at 6%.\n\nHope that makes sense!
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It is already been pointed out that the 4.23% is an annual rate.  Banks compound interest daily using the annual rate divided by 360.  This means that if you put $20,000 in the bank for a year, you should have:\n\n$20,000 * (1+.0423/360)^365 = $20,867.36\n\nat the end of the year.  That averages out to $73.03 per month (though it is less in the early months and more in the later months).
295489
10000*0.0816=816$\nu must use this formola:\nI=[(1+i/m)^m]-1\nI:EFFECTIVE interest rate\ni: nominal interest rate\nm:number of period\nand at last cross it to 10000
1059111
use future value calculators (on the web). also excel programs have financial functions section.\nin the interest rate divide it by 12..\nso, 10% annual = 10/12% per months. 15 month, $326 per month.. in your example, the future  value would be $5185.81...if you want to find the interest portion then subtract 326*15-5185.81 = $295.81
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You will use the formula\nA = Pe^(rt)\nA = 25,000\nsince the question is asking for how long, this means you are looking for t.\nYou need to know the interest rate (r) and the principal (P).
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Total amount due = capital + interest = 25000 + 10% * 25000 * 9/12\n= 26875
490808
$5,874.75\n\n$63000 x 37.3% / 4
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well, you didn't mention the compounding factor, so....\n\nsimple interest\nA sub t is the value (amount) after "t" time\nP is the initial amount invested\nr is the interest rate\nt is time ( in years)\n\n    A sub t  = P ( 1 + r) ^ t\n\nfor compound interest rate\nn is the number of times that the interest is compounded per year\n\n    A sub t = P ( 1 + r/n) ^ (n*t)\n\n\nnow, you have another problem...\nsome CDs only pay interest yearly....\nsome quarterly, some monthly...\nsince your interest rate is different from your APR, \nI'll assume a monthly compounding\n\n     Amt = $2000 ( 1 + (.0489/12)) ^ (12* (11/12))\n\nnote: the  time is 11/12 because interest is figured on a yearly basis and 11 months is 11/12 of a year\n\n  if my calculator does not deceive me\nyou should get   $2091.50
392627
At what interest rate and for how many years?
280771
the rule says that\n\nif the interest rate is x %, then your investment would approximately double in 72/x years.\n\nfor example, if the interest rate is 9%, it would take approximately 8 years to double the value of your initial investment.\n\nThis rule is more accurate if the interest rate is small. You might prove it mathematically. It's very easy to prove it.