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How much interest would have been paid if....
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aliasojo
Posts: 23,053 Forumite


......£2.50 was saved in an ordinary bank savings account every Friday since 1997, with no withdrawals ? Genuine query. I need to know roughly how much interest was lost during this period, although I realise it wont be very much.
I know it is very much a 'how long is a piece of string' type question but even a ball park figure would help. Maths was never my strong point and I glaze over when I need to work stuff like this out..
No idea how much the actual interest rate was during this time but it was an ordinary RBS kids Rainbow account and the rate now is 4.10%.
Looked back and there were 459 Fridays from Jan 1997 till now.
(£1,147.50)
Can anyone even give me an idea please? As I said... even ballpark would help.
TIA.
I know it is very much a 'how long is a piece of string' type question but even a ball park figure would help. Maths was never my strong point and I glaze over when I need to work stuff like this out..
No idea how much the actual interest rate was during this time but it was an ordinary RBS kids Rainbow account and the rate now is 4.10%.
Looked back and there were 459 Fridays from Jan 1997 till now.

Can anyone even give me an idea please? As I said... even ballpark would help.
TIA.
Herman - MP for all!

0
Comments
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Well, average interest rate for your data is 5.2%(*). I think this is about the same as average interest rate of best saving accounts. For account with 6% average interest rate the resulting amount would be £1501 - just about £50 more than you have.
The formula for todays balance is A*q*(q^n-1)/(q-1) where
A=2.5;
n=459;
q=(1+i/100)^(1/52);
i - annual interest %.
See also ISA query ? estimated value needed...
*EDIT: mistake. See my post #5 below.0 -
Ball park figure ZERO...............................I have put my clock back....... Kcolc ym0
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Thanks grumbler, I apreciate you taking the time to help. Just want to check though....the £1501 figure is £353.50 more than my original figure, not £50 more. The £1501 figure is the right one though?
Thanks too for the formula....only I glazed on the first line.Herman - MP for all!0 -
aliasojo wrote:Thanks grumbler, I apreciate you taking the time to help. Just want to check though....the £1501 figure is £353.50 more than my original figure, not £50 more. The £1501 figure is the right one though?
Thanks too for the formula....only I glazed on the first line.
5.2% is for £1447 not for £1147
more correct results:
3% - £1311
4% - £1372
5% - £1435
6% - £15010 -
That's great, thank you again. Very helpful to have an idea of the kind of figures involved.Herman - MP for all!0
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I wish! :rotfl:Herman - MP for all!0
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