Calculate interest?

Question

i was wondering.. lets say i had put $20,000 in a Savings acount in 1994 at like a 4% monthly interest.. how can i calcute how much the amount is right now?

Answer 1

1994 - $20,000 X 4% = $800
1995 - $20,800 X 4% = $832
1996 - $21,632 X 4% = $865
1997 - $22,497 X 4% = $900
1998 - $23,397 X 4% = $936
1999 - $24,333 X 4% = $973
2000 - $25,306 X 4% = $1,012
2001 - $26,318 X 4% = $1,053
2002 - $27,371 X 4% = $1,095
2003 - $28,466 X 4% = $1,139
2004 - $29,605 X 4% = $1,184
2005 - $30,789 x 4% = $1,232
2006 - $32,021 X 4% = $1,281 / 360 Days X 287 Days = $1,021

Using compund interest it's worth $33,042 as of 10/17/06

Answer 2

The symbol "%" means per centum --- that is, one part in a hundred. So 4% expressed as a decimal number = .04
Simply multiply your $20,000. by .04 to see how much interest you would have each month. That gives $800. per month. However, interest is usually expressed as an Annual Percentage Rate (APR). For a "simple" interest account, the APR would be 12 times the monthly rate --- or 48%. If you have a "compound interest" account, then each month 4% of your "principal" (total amount) would be added to your principal. So the second month you would draw 4% of $20,800. Just keep the calculations going until you reach the current month in 2006. There are web sites with free tables --- call "amortization" tables, or time payment schedules. Right now I cannot remember which sites. But you can do a Google search for "amortization + schedule" and find several sites.

Answer 3

FV= PV (1+r) ^n
= 20,000 (1+.04) ^ 144
= 5,673,236

if money was placed on january 1994 that would be the value in december 2006 assuming there are no withdrawals in between these periods

Answer 4

To calculate 4% on a calculator, it's 20,000 x 4%.

It's 4% per year, so 4% of $20k is $800, so after a year you'd have $20,800. The second year it's 4% of that amount, and so on. It's called compound interest (as opposed to the interest being taken off the $20,000, or capital, and sent to you to spend).

I think there's a formula you can use without having to calculate it for every year & add it on, but I've no idea what that is.

Answer 5

Say you put it at the beggining of 1994; so you would have, untill September time=141 months.
with a interest of 4% compounded montly, the formula would be:
20,000*(1.04^141)
you should have about
5,043,486.
If it were compounded annually then you would have an interest of 4%*12=48%
time is 11 years (assuming you put the money in the beggining of the period, and the payment is at the end)
so the formula would be
20,000 (1.48^11)
wich is 149,248
I think thats close enough.
Good luck!

Answer 6

$32,295.54.

I assumed you meant 4% per year compounded monthly, giving a monthly compounding rate of 0.333.

You can use this cash flow website to make the calculations. Click on the Cash Flow link. Remeber the number of periods would be 12 years x 12 months = 144 months of componded interest.

http://geocities.com/twong18/

Answer 7

M = P( 1 + i )^n M is the final amount including the principal. P is the principal amount. i is the rate of interest per year. n is the number of years invested m = 700(1+0.06)^5 = £936.76

Answer 8

The interest is: $115200
If you borrowed the $20000.00, you would now owe $135200.00


The following URL explains the working too -
http://www.webmath.com/simpinterest.html


regards

Ramesh
The Human Search Engine
http://www.alluwanted.com

Answer 9

FV=PV (1+r)^n

Which means the future value equals the present value ($20K) multiplied by (1.04)^12

Answer 10

is the interest compounded monthly or annually?