1 Answer
HI I ASSUME YOU MEAN SIMPLE INTEREST WHERE INTEREST GAINED EACH YEAR IS NOT ADDED ON TO THE CAPITAL
$30,000 AT 1.9% = 30000 X 1.9/100 = 300 X 1.9 = $ 570 per YEAR INTEREST
SO IN 5 YEARS YOU WOULD GET 5 X 570 = $2850 INTEREST
IF YOU WANT COMPOUND INTEREST WHERE THE INTEREST IS ADDED ONTO THE CAPITAL EACH YEAR THEN
1ST YEAR $30,000 X 1.9/100 = $570
2ND YEAR $30000+570 = 30570 X 1.9/100 = $ 580-83cents
3rd YEAR $30570 + 580 -83 = $31150 -83 X 1.9/100 = 591.87
4TH YEAR $31150.83 + 591.87 = $31742.70 X 1.9/100 = 603.11
5TH YEAR $31742.7 + 603.11 = 32345.81 X 1.9/100 = 614.57
TOTAL = $32345.81 + 614.57 = $32960.38
THEREFORE THE INTEREST WOULD BE $32960-38 - $30000 = $2960.38
I HOPE THIS HAS HELPED AS YOU CAN SEE LEAVING THE INTEREST IN HAS ONLY INCREASED THE INTEREST TOTAL BY $110-38cents
I HOPE THIS HAS HELPED MONDEOMAN
11 years ago. Rating: 0 | |