







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. 





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. 





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. 

