| Jan 02 |
Calculate the Value of Investments Based on Interest
Last week you have seen that the differences in the use of interest can affect your investment balance at the end of the year, although all are equally promising 12 percent interest per year. The reason is simple: because the amount of interest you receive is different. Different interest that you can then bring the term “effective rate.” I.e. the ratio of the amount of interest you earn at the end of the year, with the amount of money you entered. How to calculate the effective interest rate is very simple: the interest you receive at the end of the year divided by the nominal value of your money at the beginning of the year. (more…) |
