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10-31-2007, 03:02 PM
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#1 |
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Greenhorn
Join Date: Jul 2006
Posts: 20
Rep Power: 6  |
i have a question about saving account and the interest compounded over a two year period?
you deposit $900 in a savings account that earns 4% interest compounded once a year and has no service charges. you do not make any deposits or withdrawals for two years,after the second year's interest has been added to the account by the bank, how much money will be in the account.<br />
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10-31-2007, 03:02 PM
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#2 |
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Greenhorn
Join Date: Jul 2006
Posts: 21
Rep Power: 6 |
i have a question about saving account and the interest compounded over a two year period?
P X R X T= BALANCE
$4160 |
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10-31-2007, 03:02 PM
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#3 |
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Greenhorn
Join Date: Jul 2006
Posts: 9
Rep Power: 0 |
i have a question about saving account and the interest compounded over a two year period?
If that is a net interest rate then that should be $973.44 4% of 900 = $36 then 4% of $936 = $37.44
BTW here in UK interest rates are like 6.75 for savings though our mortageg rates are a lot higher than yours too. |
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10-31-2007, 03:02 PM
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#4 |
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Greenhorn
Join Date: Jul 2006
Posts: 27
Rep Power: 6 |
i have a question about saving account and the interest compounded over a two year period?
Tony F is right. codman is going to be terribly disappointed with a savings account.
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10-31-2007, 03:02 PM
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#5 |
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Greenhorn
Join Date: Jul 2006
Posts: 11
Rep Power: 0 |
i have a question about saving account and the interest compounded over a two year period?
The computation is:
$900 X1.04 = $936 after one yr. $936 X 1.04 =$973.44 after two yrs. regards, Texian |
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