anybody know how to calculate how much
Results 1 to 6 of 6
  1. #1

    Join Date
    Jan 2006
    Posts
    205
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default anybody know how to calculate how much

    money i will make in interest on an account? The opening balance is 2400. The interest rate is 4.31%. The annual percentage yield is 4.40%. Interest is compounded/credited monthly. how much can i earn in one month with 2400? thanks for any info on how to calculate this!!!

  2. #2
    Registered User MTS04's Avatar
    Join Date
    Sep 2006
    Posts
    746
    Post Thanks / WTG / Hug
    Blog Entries
    5
    Rep Power
    18

    Default

    I believe the total is $8.83

    Here's an online calculator: math.about.com/library/blcompoundinterest.htm (I can't post a URl witout 15 posts, sorry - you'll have to copy/paste in your address bar)

    From about.com
    If you want to know how much interest you will earn on your investment or if you want to know how much you will pay above the cost of the principal amount on a loan or mortgage, you will need to understand how compound interest works.

    * Compound interest is paid on the original principal and on the accumulated past interest.

    Formula:

    P is the principal (the initial amount you borrow or deposit)

    r is the annual rate of interest (percentage)

    n is the number of years the amount is deposited or borrowed for.

    A is the amount of money accumulated after n years, including interest.

    When the interest is compounded once a year:

    A = P(1 + r)n

    However, if you borrow for 5 years the formula will look like:

    A = P(1 + r)5


    This formula applies to both money invested and money borrowed.

    Frequent Compounding of Interest:

    What if interest is paid more frequently?
    Here are a few examples of the formula:

    Annually = P × (1 + r) = (annual compounding)

    Quarterly = P (1 + r/4)4 = (quarterly compounding)

    Monthly = P (1 + r/12)12 = (monthly compounding)
    Last edited by MTS04; 10-11-2006 at 04:14 PM.

  3. #3
    Registered User pammy's Avatar
    Join Date
    Sep 2005
    Location
    OK
    Age
    48
    Posts
    1,163
    Post Thanks / WTG / Hug
    Rep Power
    16

  4. Remove Advertisements
    FrugalVillage.com
    Advertisements
     

  5. #4

    Join Date
    May 2006
    Posts
    2,999
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    I love the calculator at http://budget101.com/. Go to the left side and scroll to Money & Financial Matters and click on that. It will take you to the calculator. It is very easy to use.

  6. #5

    Join Date
    Jan 2006
    Posts
    205
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    thank you so much for the links and information!!!

  7. #6
    Registered User JustJoy's Avatar
    Join Date
    Jun 2006
    Location
    Northern IL
    Age
    57
    Posts
    2,451
    Post Thanks / WTG / Hug
    Rep Power
    16

    Default

    Thanks so much ladies. I opened an ING account a few weeks ago and I've been wondering how to calculate the interest too.

Similar Threads

  1. How Do YOU Calculate Your Net Worth?
    By TheRootedNomad in forum Debt Reduction & Money Management
    Replies: 7
    Last Post: 07-28-2008, 05:28 AM
  2. how to i calculate how much yarn i need
    By pita1213 in forum Needle Arts
    Replies: 3
    Last Post: 04-12-2007, 03:27 PM
  3. How do you calculate how quickly you'll use things?
    By Valerie in WA in forum Frugal Living
    Replies: 4
    Last Post: 08-03-2005, 11:46 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •