







Compound interest 
20190528 

From Kenneth: Hello:
Is compound interest on $1.00 for one year the same as simple interest on
$1.00 for one year?
Compound interest would be $1.01, and I believe the same amount would be
the same at simple interest. Answered by Penny Nom. 





Compound interest 
20130510 

From Kyla: I am doing correspondents and cannot figure out how to explain the solution to this question, I do not understand how they came to this answer and need it explained step by step so I can complete the following questions in this unit, please help!!!
Calculating compound Interest
Johnny invest $800 that pays 8% compounded quarterly for 5 years. How much is the investment worth at the end of the 5th year? Answered by Penny Nom. 





25 billion dollars 
20110826 

From Bill: If you have $25billion dollars, what would the value of this amount become if you inflated it at 4% per year for 55 years?=C2=A0 My TVM calculator will not go this high. Answered by Penny Nom. 





A loan 
20100616 

From melody: LOAN: 1000
TERM: 2 years
INTEREST: 2% (per month)
AMOUNT: ???
what is he formula of solving this and what is the answer.. Answered by Robert Dawson. 





Compound interest 
20100601 

From Kenneth: Hello:
I have a question regarding the following compound interest and future value
calculation.
Year 1 P + rP equals balance after the first year.
Year 2 (P + rP) + r(P + rP) equals balance after the second year.
Year 3 ? equals balance after the third year.
This question is in two parts.
1. What would follow for year three?
2. I know that a pattern will develop. What will it be so that I can determine
the extended pattern for following years ? Answered by Penny Nom. 





Compound interest 
20100421 

From Kenneth: Let's say that an investor has $1000.00 to invest for 3 years at a rate of 5% at
compound interest. Here is the formula:
M = 1000(1 + 0.05)^3 = $1157.62
If I want to change 1000(1 + 0.05) to (1000 + 0.05*1000) three times in a
calculation instead of using (1 +0.05)^3, how would this be done?
I cannot get (1000 + 0.05*1000) + (1000 + 0.05*1000) + (1000 + 0.05*1000) to
equal $1157.62.
I know that 1000(1.05)(1.05(1.05) will produce the answer, but I want to try to
use the above nonfactored calculation. Answered by Penny Nom. 





Compound interest 
20100227 

From Allison: Have $1000.00 in saving account compound annual interest rate 6%
please calculate what it is worth 3 years, 5 years and 10 years? Answered by Tyler Wood. 





Saving for his daughter's education 
20090115 

From George: To save for his daughter’s university education at the end of each month Mr McLean sets aside £50 in a savings scheme paying 10% p.a. compounded monthly. He begins saving when his daughter is 3 years old. How much will he have saved by the time his daughter is 18? Answered by Harley Weston. 





Compound interest 
20090102 

From maninder: at what rate % compound interest per annum will be rs. 640 amount to rs. 774.40 in 2 years. Answered by Penny Nom. 





Interest compounded monthly 
20081213 

From ameeta: joanna invest 500 dollars. She received 6 percent interest compounded monthly. how much interest did she earn with this investment after 3 years.
the answer i calculated out to be was 90 dollars but could you please show me the steps. Answered by Robert Dawson and Penny Nom. 





A 5% raise each year for 20 years 
20080913 

From marie: In his first year, a math teacher earned 32,000. Each successive year, he earned a 5% raise. How much did he earn in his 20th year? What were his total earnings over the 20year period Answered by Stephen La Rocque. 





Interest compounded daily for 6 months 
20080618 

From Cheryl: Compounded interest daily on cd.....$1,000.00 at 2.53% for 6 months. How much will this CD earn? Answered by Penny Nom. 





Compound interest 
20070711 

From Michelle: Present Value of $1500 to be paid in Year 7, with an interest rate of 12% Answered by Stephen La Rocque. 





Paying off a debt 
20070426 

From Ema: How would you enter a formula in Excel for the following:
payment is applied to principal balance, then 8% interest
compounded daily, then .25% monthly penalty Answered by Stephen La Rocque and Penny Nom. 





Compound interest 
20070320 

From cos: how much would $2000 be at the end of 1 yr. at a daily compounded interest rate of 3% be? the 3% is not yearly but daily. thank you very much for your help!! Answered by Penny Nom. 





Compound daily interest 
20070127 

From Sharon: calculate the return on $20,000 for 3 years at an interest rate of 8% that compounds daily. Answered by Stephen La Rocque. 





Compound interest 
20060601 

From Kerem:
Question: Quing deposits $40 at the end of each month into a savings account. If the money earns 4% annum compounded monthly, how much money is in the account at the end of 24 months?
and
Calculate the present value of an annuity, if $150 payments are to be made monthly for 4 years and the interest rate is 9% per annum compounded monthly.
Answered by Natasha Glydon and Penny Nom. 





Compound Interest Formula and explanation 
20060414 

From Michelle: Currently there is $10,000 in a customer's savings account that earns 4% interest compounded annually.
How much interest will the customer earn in a year? Answered by Stephen La Rocque. 





$24,000 investment at 5% daily interest 
20051221 

From Gary: My friend is a professional day trader on the stock exchange. He claims that he can take a $24,000 investment at 5% daily interest and at the end of 3 years have approximately 34 million dollars. Can this be correct? Answered by Penny Nom. 





Future value 
20020627 

From Susan: If one were to invest $115 a month for 20 years and expect a 4% annual return, what is the value of this money in 20 years? Answered by Leeanne Boehm. 





Compound interest 
20010411 

From A student: What principal will grow to $1367.10 after 1 year at 10% compounded semiannually? Answered by Claude Tardif and Penny Nom. 





Interest compounded daily 
20000403 

From Debbie Bracken: How do I figure interest that is compounded daily? 8% compounded daily. Answered by Penny nom. 





Compounding continuously 
20000321 

From Gina: You deposit $1500 in an account that pays 6.5% annual interest, compounded continuously. Find the balance after 10 years. I'm not sure what to do with the "compounded continuously" part. Answered by Penny Nom. 





Compound Interest 
19990701 

From Kim Palmer: In early 1997, my son borrowed $4831 at 7.5%. He has made 30 monthly payments of $130 each. He is now in a position to pay off the balance. What is his remaining principal? Answered by Penny Nom. 

