Please explain what this percentage means? (video)
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If a bank offers 0.02%, what does that mean? Say I have $5 in the bank, what is 0.02% of that?
It's two one hundredths of one percent. It can be a little confusing because it's percentage with decimal value. To get the percentage of number you multiply the number times the percentage but first you move the decimal point to the left two numbers. If it was 2% you could also show it as 2.0% percent.
Neither the right question was asked nor were the answers useful.
For one thing, "a bank offering 0.02%" means it's an interest rate, and the return can't be calculated without knowing the rate period - daily, most likely, but it could be monthly.
Also, 0.02% does not mean "x 0.02," but one hundredth of that rate. It would be 0.1 cents per period on five bucks, and gains would probably be lost to rounding/minimum accrual at that level.
$500 would gain 10 cents a day, probably credited monthly, or about $3 for a month.
Neither the right question was asked nor were the answers useful.
For one thing, "a bank offering 0.02%" means it's an interest rate, and the return can't be calculated without knowing the rate period - daily, most likely, but it could be monthly.
Also, 0.02% does not mean "x 0.02," but one hundredth of that rate. It would be 0.1 cents per period on five bucks, and gains would probably be lost to rounding/minimum accrual at that level.
$500 would gain 10 cents a day, probably credited monthly, or about $3 for a month.
That would mean $500 earns $36 of interest in one year, which (ignoring compounding) is 7.2%.
Banks quote annual interest rates, not daily interest rates.
$500 earning .02% APR = $0.10 interest per year. Sadly, this is more or less what brick and mortar banks have been paying for some time now.
It's two one hundredths of one percent. It can be a little confusing because it's percentage with decimal value. To get the percentage of number you multiply the number times the percentage but first you move the decimal point to the left two numbers. If it was 2% you could also show it as 2.0% percent.
5 * .02 = .1 or ten cents
For 0.02%
5 * .0002 = 0.001 or one tenth of a penny.
OK, and I'm reading this again, because I guess (?) I forgot. So, yes, it is confusing for me because as you say, it's percentage with a decimal value. And when I went to school 2% was written as .02. Not, I suppose, as .02%. Still can't figure it. So 2% means 2% of something. So is 2% written as .02, but not .02%??? Or is it more precisely written as 0.02% in that case where it is not really 2%? I guess that is where my confusion is. If someone else has already answered the question, please excuse but maybe you can help out by answering it or pointing to the answer. Thanks.
That would mean $500 earns $36 of interest in one year, which (ignoring compounding) is 7.2%.
Banks quote annual interest rates, not daily interest rates.
$500 earning .02% APR = $0.10 interest per year. Sadly, this is more or less what brick and mortar banks have been paying for some time now.
I see that. Thanks.
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