With compounding interest, calculate the total interest of the capital of 2.5m where interest is 16.77% per anume.
If I invest 2.5m naira.
What’s gonna be my 12 months return of interest
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Good, so here are the common cases for ₦2,500,000 at 16.77% per annum over 12 months. Annual compounding (once a year) Interest = 2,500,000 × 0.1677 = ₦419,250 Total after 12 months: ₦2,919,250 Monthly compounding Monthly rate = 16.77% ÷ 12 = 1.3975% Growth factor = (1.013975)¹² ≈ 1.18115 Total afteRead more
Good, so here are the common cases for ₦2,500,000 at 16.77% per annum over 12 months.
Annual compounding (once a year)
Interest = 2,500,000 × 0.1677 = ₦419,250
Total after 12 months: ₦2,919,250
Monthly compounding
Monthly rate = 16.77% ÷ 12 = 1.3975%
Growth factor = (1.013975)¹² ≈ 1.18115
Total after 12 months ≈ ₦2,952,880
Interest ≈ ₦452,880
Quarterly compounding
Quarterly rate = 4.1925%
Growth factor = (1.041925)⁴ ≈ 1.17862
Total after 12 months ≈ ₦2,946,550
Interest ≈ ₦446,550
Daily compounding (365 days)
Growth factor = (1 + 0.1677/365)³⁶⁵ ≈ 1.18255
Total after 12 months ≈ ₦2,956,370
Interest ≈ ₦456,370
and use can use fokona calculator to calculate the investment
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