PDA

View Full Version : ING financial Qust...


suzct
06-15-2006, 09:33 PM
I am thinking of opening a savings acct w/ them as we have a little extra sitting around in our checking acct earing nada. I am financially challended. Could someone explain how the compounded interest works? For example, if we put $1000 to start and didn't touch it for a year, how much would we make? I think the % now are 4XXX% /
Thanks

disneychrista
06-15-2006, 11:13 PM
It basically mean you earn interst on your interst.

Month 1 you earn interest on your $1000
Month 2 you earn interst on your $1000 + the interest earned in month 1
Month 3 You aren interest on $1000 +month 1 interest + month 2 interest

Example:
Month 1 $1000, interest earned month 1 $15
Month 2 $1015, interest earned month 2 $15.23
Month 3 $1030.23, interest earned month 3 $15.43

Hedy
06-16-2006, 06:16 AM
Numerically:
A=P(1+(R/n)^nt)
Presuming the rate didn't change:
1000*(1+.0425/12)^12
$1043.33 after one year

canwegosoon
06-16-2006, 06:40 AM
Numerically:
A=P(1+(R/n)^nt)
Presuming the rate didn't change:
1000*(1+.0425/12)^12
$1043.33 after one year
Hedy...Those were the days!!! Finance 101!!! :teacher:

disneysteve
06-16-2006, 07:17 AM
http://www.bankrate.com/brm/cgi-bin/savings.asp

This is a nice simple savings calculator.

Hedy
06-16-2006, 07:43 AM
Hedy...Those were the days!!! Finance 101!!! :teacher:
I'm a geek, sorry.