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January 12th, 2007 at 06:31 pm

Can someone show me mathmatically what I would earn on $800.00 at 4.5% compounded annually. I know ING is supposed to pay interest monthly but I have never learned quite how to do it. It's not that I can't multiply but am not sure of my results. Thanks a bunch....SmileSmileSmileSmile

Posted in Uncategorized | 10 Comments »

10 Responses to “?”

  1. monkeymama Says:
    January 12th, 2007 at 06:38 pm 1168627117
    1168627117

    Compounded annually would just be
    $800 x 1.045, or $836. Monthly might earn you another couple of dollars - I bet you can finad an online calculator tool. But I guess us blog readers will do, eh? LOL.

  2. scfr Says:
    January 12th, 2007 at 06:48 pm 1168627700
    1168627700

    Here's a calculator:
    http://www.bankrate.com/brm/cgi-bin/savings.asp

    It doesn't show you what you should be getting each month, but it will show you how the amount will grow over time and how much you should have after the end of one year, two years, etc.

  3. Lau Says:
    January 12th, 2007 at 07:30 pm 1168630216
    1168630216

    4.5% is the APR, which means that if you deposit $800 , you'll have what monkeymama says after 12 months: 800 * 1.045 = 836. Which means that you'll get around $2.94 in interest the first month, and a little more (a few cents more) every month after that.

  4. marymara Says:
    January 12th, 2007 at 07:40 pm 1168630815
    1168630815

    Thank you all so much. I hope you will think that there is no such thing as a silly question. I will probably have a LOT more questions as time goes on. I really appreciate your help. SmileSmile

  5. marymara Says:
    January 12th, 2007 at 07:41 pm 1168630903
    1168630903

    LOL..........who needs a calculator when I have YOU? (smile)

  6. Broken Arrow Says:
    January 12th, 2007 at 07:52 pm 1168631540
    1168631540

    Monkeymama has shown you the correct one for compounding annually, and that's the easiest one to use... which is:

    Principal * ( 1 plus Interest Rate)

    To compound monthly, the formula starts to get ugly:

    Principal * ( 1 plus ( Interest Rate / 12 ) ) ^ 12

    Me? When I'm in front of a computer, I use
    Text is Money Chimp and Link is http://www.moneychimp.com/calculator/compound_interest_calculator.htm
    Money Chimp! Big Grin

    (And no, there is no such thing as a silly question, especially when it comes to our money! Smile)

  7. Ima saver Says:
    January 12th, 2007 at 09:46 pm 1168638386
    1168638386

    Mary, just take $800 times .045 =$36. If you want to know daily, divide $36 by 365 days and you are earning .0986 cents a day. Almost 10 cents!

  8. scfr Says:
    January 13th, 2007 at 01:10 am 1168650623
    1168650623

    And here's something exciting: If you leave the money and all of the interest there (and if the rate doesn't change) in 10 years the amount will be $1,242.38.

    And here's something REALLY exciting: If you add just $10 a month to the account, and leave all of the money and interest there (and if the rate doesn't change) in 10 years the amount will be a whopping $2,765.57!!!

  9. marymara Says:
    January 13th, 2007 at 01:15 am 1168650944
    1168650944

    Wow!!! I have been using the moneychimp.com calculator as suggested by
    Broken Arrow. Great thingie!

  10. baselle Says:
    February 8th, 2007 at 07:55 am 1170921338
    1170921338

    And think of it this way - for every 80$ you put in, you get a penny more in interest/day.

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