I just opened a regular $100 savings account today at First Community bank. If i don't make any withdraws, how much will be in the account after 9 months has passed.
2006-09-22 13:47:17 · 3 answers · asked by Sabrina W 2 in Business & Finance ➔ Investing
It depends on which nine months you are talking about.
Savings accounts compound interest daily using an "actual/360" method. This means that to find the value after N days, you compound N days using a rate of 5%/360.
If you start now, nine months from now will be 273 days. You will have:
100*(1+.05/360)^273 = 103.86
2006-09-22 16:51:03 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
103.75 considering both the interest is an annual rate and if a regular savings account actually gives that high of a savings rate (except for internet banks).
2006-09-22 13:51:01 · answer #2 · answered by fetchrat 3 · 0⤊ 0⤋
It depends on what the 5% compounds at.
5% annual interest is $103.73
if compounds daily, monthy or quarterly worth more.
2006-09-22 13:51:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋