Just opened an online savings account. how do i work out the interest over 1 and 5 years?????

Question

online savings account: i pay in every month of £200. an interest rate of 5.00% AER/gross p.a. is paid annualy.

what will be new the balance after 1 year?

what will be new the balance after 5 years?

how did you do the calculations?

Answer 1

To work out the balance after 1 year, times 200 by 12. Then work out 5% of the total and add it all up. ie 2400, 5% is 120 so after 1 years its 2520.
Its more complicated for 5 years as you have to work out firstly year one total of 2520. Then add on another 12 months of 200 (2400), then work out the 5% of that. So the total is 4920 - 5% of which is 246. So total after 2 years is 5,166. Then you have to work out year 3, and so on and so on!

Hope that makes sense!!

Ok Ive worked it out as after year 1 - £2,520.
After year 5 - £3924.60

Answer 2

year 1:
total saving 200 x 12=2400
(+) Interest 2400 x5%= 120

total =2520

year 2:
2520+2400=4920
interest 5% =0246
total =5166

year 3: 5166+2400=7566.00
interest 5% = 378.30
total =7944.30

Brof work out the rest...................!!!!

Answer 3

I found a quote facility on www.nationwide.co.uk.