finance
 






 

Question by  georgesquales (23)

What is the interest on $100,000 at 4% a month?

 
+6

Answer by  John (9008)

Assuming the interest is compounded monthly, which must be verified, it would be $4,000 per month. Note that the principal will rise every month if the interest is not withdrawn.

 
+5

Answer by  Vladlen (358)

It's 4% a month (100,000 x 1.04 - 100,000 = 4000). If you want to know how much it is converted to annual interest, than it is (1.04^12 - 1) x 100% a year (equals ~60.1% a year)

 
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