Compound interest - the importance of rounding.License Terms: IMathAS Community License CC-BY + GPL License: CC BY-SA: Attribution-ShareAlike Get additional guidance for this example in the following: For example if you rounded log(2) to 0.301 and log(1.005) to 0.00217, then your final answer would have been about 11.577 years.
Note that your answer may come out slightly differently if you had evaluated the logs to decimals and rounded during your calculations, but your answer should be close. Remember that these are just hypothetical examples. If you deposited 1 million, you could earn about 250,000 in interest paid at maturity (after five years). Again, we considered a 5pa interest rate. It will take about 11.581 years for the account to double in value. With that in mind, we’ve also looked at 1 million deposited in a five-year term deposit, with interest paid at maturity. Since interest is being paid monthly, each month, we will earn \frac=N Approximating this to a decimal The 3% interest is an annual percentage rate (APR) – the total interest to be paid during the year. Suppose that we deposit $1000 in a bank account offering 3% interest, compounded monthly.
