How much will i have at the end of 60 months if i save £175 a month in a 5% isa and i dont withdraw till the e

Answer 1

£2205 minus charges. Yea, did they NOT tell you that when you put in it they charge you between 3% - 5% depending on the company. So, in reality you likely will only break even in the first year. Who was it that gave you that advice to put money into an ISA for one year?????
You maybe able to claim of them if you completed the factfind correctly.

Answer 2

11,950.68

If the 5% interest will be applied monthly, 0.42% per month, which is higher than 5% annually.

Also, interest will be earnt on interest paid monthly. So you can't take a full year and x it by 5%.

RRM is closer, but you won't get 5% a month. 5% a month would be an annual rate of 80%. The first month will be 73p interest.

If you have Excel you can use the FV function.

Type in =fv(5%/12,60,175,,1)

This will give you the result of £11,950.65 - out by 3p due to rounding.

If this is a cash ISA - which it seems to be, you probably won't have any charges. So you will end up with almost £12k.

Answer 3

K2 isn't quite right unless you only get the interest paid at the end of the 60 months.

Normally you will have interest credited annually or monthly, so the figure will compound.

eg; month 1 you pay in £175 x 5% = 8.75 + the original £175 = 183.75
So in month 2 you add another £175 = £358.75 x 5% = £17.94 in interest. Giving you a balance of £376.69 which you then earn another 5 % on.

And so on.

Answer 4

£175 x 12 = £2,100
£2,100 + 5% interest = £2,205

£2,205 + (£2,100 for the next 12 months) = £4,305
£4,305 + 5% = £4,520.25

£4,520.25 + (£2,100 for the next 12 months) = £6,620.25
£6,620.25 + 5% = £6,951.26

£6,951.26 + (£2,100 for the next 12 months) = £9,051.26
£9,051.26 + 5% = £9,503.82

£9,503.82 + (£2,100 for the final 12 months) = £11,603.82
£11,603.82 + 5% = £12,184.02