Calculate Deposit Interest

origrudeboy

Hello all

My mum very kindly lent me £13,000 as the deposit for a flat purchase, approaching two years ago.

The money was lent on the basis that I would repay the interest that would have accrued if the money was sat in the bank.

I would like to give her a statement for the past two years on the 1 July 2009.

I have found the Bank of England Interest Rate list on their website called the Official Bank Rate History but I can't post the link here unfortunately.

Is anyone good enough at maths or Excel to say how much interest there would be for £13,000 if it had sat in the Bank of England since 1 July 2007?

Do you think it would be possible to add a calculator application that read this interest rate list?

Any help or ideas much appreciated.

Thanks

Derek

[Deleted User]

<amount> * (1 + interest rate/100 ) = total after one year. e.g

13,000 * (1 + 4/100) = 13000 * 1.04 = £13,520
next year...
13,520 * 1.04 = £14,060.80

So.. at a 4% interest rate, £13,000 will accumulate £1060.80 in interest in 2 years. Cumulative interest is fun!

origrudeboy

Hi

Thanks for the quick response

What do I do when the rate changes for different periods of time:

2007, 11, Jan, 5.25
, 10, May, 5.5
, 5, July, 5.75
, 6, Dec, 5.5
, , ,
2008, 7, Feb, 5.25
, 10, April, 5.0
, 8, Oct, 4.5
, 6, Nov, 3.0
, 4, Dec, 2.0
, , ,
2009, 8, Jan, 1.5
, 5, Feb, 1.0
, 5, Mar, 0.5

I had £13,000 on 1 July 2007 when the rate was 5.5% and now it is 0.5%???

Many thanks

Derek

sammyjammy

I've done you a spreadsheet, if you PM me your email address I'll email it through to you, it works out with compound interest at £14,065

RufusA

I made it £14,036 up to July 2009 (assuming no changes in BoE) but probably made a mistake or two in my spreadsheet:

http://spreadsheets.google.com/ccc?key=pzfkaT-8zYK4wtgv9SQL6Vg

Rufus.

origrudeboy

RufusA, sammyjammy

You guys rule!

You should approach the Bank of England website and get them to convert your spreadsheets into an online calculator.

It was great for working out this deposit interest but this would equally work for people wanting to measure the impact of base line tracker mortgages.

Thanks again