2007-01-10 07:15:58 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
is that person who just answered retarded?
i dont know the formula to work this out, sorry. i only know compound interest on a set amount over time, not adding more each month.
2007-01-10 07:24:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
£3,737.31 is the correct answer. You can't just add up all the payments and then calculate interest at the end. Math on this answers thing is pretty shoddy...
I will agree with one thing someone said above - .5% is a horrible return. Check with any of the online banks to get 4% or better. At 4.5% (ING current rate), you'd have £5,090.24 at the end of 15 years.
2007-01-10 07:36:17 · answer #2 · answered by budget_master 2 · 0⤊ 0⤋
Including 0.5% interest, you would get £3618 at the end of the 15 year period (Only £18 interest!)
2007-01-10 08:13:25 · answer #3 · answered by ollymorry 2 · 0⤊ 0⤋
It's actually $3,737.631. The last guy missed the 6. Assuming monthly compounding.
I agree it's a crappy return. But that wasn't the question.
2007-01-10 07:43:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
20 x 12=240 . 240x15 years = £3'600 then 0.5% = £3'618 thats not good . buy premiun bond for post office , better investiment
2007-01-10 07:24:23 · answer #5 · answered by Mr Tiger Tony 4 · 0⤊ 0⤋
only £18 I am afraid..
0.005x20x12x15=18
2007-01-10 07:21:46 · answer #6 · answered by hirvirs 2 · 0⤊ 0⤋
compounding interest?
2007-01-10 07:23:48 · answer #7 · answered by northville 5 · 0⤊ 0⤋