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Help calculating interest please!

prettyandfluffy · 2023-12-01 16:56:24

Can someone please tell me what the interest would be on £6,000 at 6.09% AER over 6 months? Thanks for any help, I don't trust my own maths! ETA Just realised I've posted in the wrong forum, have flagged it to be moved.

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EthicsGradient Posts: 1,246 Forumite

4 December 2023 at 9:38PM edited 4 December 2023 at 9:38PM

I would say that they may well compound interest monthly, in which case the £180 figure is correct. Simply, this is arrived at by saying the total is 6 months of being multiplied by the monthly ratio, ie
1.0609^(6/12)
or the square root of 1.0609, which is 1.03 exactly - ie a 3% increase.

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