I invest $15,000 in a company that earns me 14% anually. What is my monthly rate of return?

Question

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Answer 1

The rate of return monthly, as Kenneth said,

is 14%/12 = 1.167 % per month.

On the first month you would earn $175 interest

 

However, on each subsequent month the interest

earned for the month is a little higher than the

previous due to the rise in the amount of money

in the investment account.

 

For the year:

A = 15,000(1+.14/12)¹² = $17,240.13

This means the interest for the year was

$2,240.13

 

As a monthly average we earned:

2240.13/12 = $186.68 average interest earned per month

 

 

Answer 2

14% / 12 is the monthly rate.  Compute this as a decimal, and multiply by 15K.