2007-04-04 05:05:04 · 6 answers · asked by Brendaashe J 1 in Business & Finance ➔ Investing
It depends on how the tax compounds - daily, monthly, quarterly, annually - so need more information
of course, bankrate.com has all of those calculators, just key your #'s in and the answer pops out.
2007-04-04 05:09:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
well a financial calculator is the easiest or using the the financial function in an excel spreadsheet.
However you can do this by hand all it really is is just takin the interest compounded annually.
so for example
year 1 = 106,000 + 5% interest = 111,300
year 2 = 111,300 + 5% interest = 116,865
so on....
but the total value after 7 years is 149,152.64
so 149,152.52 - 106000 = 43,125.52 interest will be paid at the end of 7 years.
2007-04-04 05:17:13 · answer #2 · answered by John 2 · 0⤊ 0⤋
bankrate.com will have calculators for that. the problem with doing the calculation accurately, is that there is an assumption made that you will reinvest the interest at 5%. Of course you have to compound this interest as well to get a true yield to maturity. But for a ball park answer you should be able to use the calculator on that site
2007-04-04 05:53:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
How often is the intrest compunded? You can use this equation to find out.
A=s(1+(.07/n)^7n
where A is the amount of monney you will end up with, s is the starting amount, and n is the amount of times it is compounded each year.
2007-04-04 06:24:00 · answer #4 · answered by Robert 3 · 0⤊ 0⤋
Depends how you will be receiving the interest. Is it a CD? What type of account is it?
2007-04-04 05:09:12 · answer #5 · answered by Jenn C 3 · 0⤊ 0⤋
If it is a loan or mortage, try this link....
http://www.bankrate.com/brm/popcalc2.asp
I use it for car loans,
good luck
2007-04-04 05:14:41 · answer #6 · answered by jon_mac_usa_007 7 · 0⤊ 0⤋