ING financial Qust...

Discussion in 'Budget Board' started by suzct, Jun 15, 2006.

  1. suzct

    suzct <font color=darkgreen>Obviously,I need simple inst

    Joined:
    May 4, 2004
    Messages:
    259
    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
     
  2. Avatar

    Google AdSense Guest Advertisement


    to hide this advert.
  3. disneychrista

    disneychrista DIS Veteran

    Joined:
    Dec 26, 2002
    Messages:
    12,054
    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
     
  4. Hedy

    Hedy <font color=blue>I'm <s>22</s> 27 and I still kind

    Joined:
    Mar 14, 2006
    Messages:
    11,136
    Numerically:
    A=P(1+(R/n)^nt)
    Presuming the rate didn't change:
    1000*(1+.0425/12)^12
    $1043.33 after one year
     
  5. canwegosoon

    canwegosoon DIS Veteran

    Joined:
    Apr 29, 2004
    Messages:
    7,137
    Hedy...Those were the days!!! Finance 101!!! :teacher:
     
  6. disneysteve

    disneysteve You have to enjoy life, not go

    Joined:
    Sep 29, 2002
    Messages:
    11,538
  7. Hedy

    Hedy <font color=blue>I'm <s>22</s> 27 and I still kind

    Joined:
    Mar 14, 2006
    Messages:
    11,136
    I'm a geek, sorry.
     

Share This Page