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Help Please!!!!
Christmas_Scrooge
Posts: 35 Forumite
I am trying to work something out (please forgive me for being thick!!).
If you invested £3000 and in ten years time it paid me £5,500. What would be the annual interest be each year. Apologies again if there is an easy formula. Please can anyone give me (a) the answer and (b) the formula. I am trying to compare it against known interest rates of other banks/ica's etc.
If you invested £3000 and in ten years time it paid me £5,500. What would be the annual interest be each year. Apologies again if there is an easy formula. Please can anyone give me (a) the answer and (b) the formula. I am trying to compare it against known interest rates of other banks/ica's etc.
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Comments
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anyone help please!!!0
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The answer is 6.25% AER
A = Initial deposit
B = Final amount
N = Number of years
Then the interest rate is found by (B / A)^1/N
which in your example gives 1.0624888 from which you subtract 1 and multiply by 100 :beer:
JC0 -
Thanks mate. Can you tell me how you arrived at that figure.0
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what do the symbols mean-anyone??0
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If you typeChristmas_Scrooge wrote:what do the symbols mean-anyone??
=(5500/3000)^(1/10)
into a spreadsheet cell it'll calculate it for you
JC0 -
Hi everyone. As you can see from the thread Jim was kind enough to supply the answer but I still dont know how to punch this info into a calculator.Anyone help??0
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Sorry to pester everybody....but can you help to explain it to me...0
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Anybody out there!!!!0
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Assuming you're using the standard windows calculator you'll need to put it in scientific mode by clicking view and then scientific to use the ( ) and ^ functions:
Press the open bracket ( button
Type in 5500
Press the divide / button
Type in 3000
Press the close bracket ) button
You should see 1.83 with the 3 recurring (in other words 1.833333333333333333).
Press the power ( x^y ) button
Press (
Type 1
Press /
Type 10
Press )
Press Equals =
Answer will be 1.062488.... For the actual percentage:
Press minus
Type 1
Press equals
Press multiply
Type 100
Press equals
6.2488.... which is 6.25 to two decimal places.
Sorry if this is too dumbed down, thought I'd do it step by step!"The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
i still don't understand...
:rotfl:0
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