The question doesn't tell us the compounding interval ... i.e., how often the
interest is compounded. It does make a difference. Shorter intervals make
the account balance grow faster.
We must assume that the interest is compounded annually ... once a year,
at the end of the year.
1,400 x (1.055)3 = 1,643.94 (rounded)at the end of the 3rd year.
$972.00From Superscot85: Above answer is for Simple Interest. You specifically stated "compound" so after 2 years balance will be 900 x (1.04)2 ie 973.44
29.86
Simple interest: 10 years @2.5% is 25% so 140.06 interest, new total 700.31; Compound interest: 560.25 x (1.025)10 ie 560.25 x 1.28 = 717.12
Per annum compound interest formula: fv = pv(1+r)^t Where: fv = future value pv = present (initial) value r = interest rate t = time period Thus, fv = 1000*(1+0.07)^5 = 1000*1.4025517307 = $1402.55
If compounded, interest = 81.244 and balance = 456.245 If not compounded, interest = 75 and balance = 450
The annual compound interest rate is 18 percent.
$131.66
$972.00From Superscot85: Above answer is for Simple Interest. You specifically stated "compound" so after 2 years balance will be 900 x (1.04)2 ie 973.44
29.86
Simple interest: 10 years @2.5% is 25% so 140.06 interest, new total 700.31; Compound interest: 560.25 x (1.025)10 ie 560.25 x 1.28 = 717.12
12.76
463.72
Per annum compound interest formula: fv = pv(1+r)^t Where: fv = future value pv = present (initial) value r = interest rate t = time period Thus, fv = 1000*(1+0.07)^5 = 1000*1.4025517307 = $1402.55
The interest for 1 year is 37.00, whether it is simple or compound interest.
If compounded, interest = 81.244 and balance = 456.245 If not compounded, interest = 75 and balance = 450
You will have 1903.737 dollars in your account at the end of 13 years. The year wise end balance will be:756816.48881.798952.3421028.531110.8121199.6771295.6511399.3031511.2471632.1471762.7191903.737This is under the assumption that you don't deposit any fresh funds into your account and initial 700 dollars + the accumulated interest is all that is available in the account.
700.31