Calculate Percentage

zsad58

If the annual percentage is 36% how can I calculate the monthly pecentage. The amount I want to calculate the monthly percentage of is £13500.00.

I telephoned the company thay say the monthly percentage is 3.65% I would like to know how they came to this figure

TIA Zsad

aleph_0

zsad58 wrote: »

If the annual percentage is 36% how can I calculate the monthly pecentage. The amount I want to calculate the monthly percentage of is £13500.00.

I telephoned the company thay say the monthly percentage is 3.65% I would like to know how they came to this figure

TIA Zsad

There is no obvious way I can think of that they have come up with that figure.

Actually, what is this a rate for. 36% would be a high rate for a savings account (sounds too good to be true etc.), which is what this board is dedicated to.

Hungerdunger

According to my calculations (which are probably wrong) you will end up with £183,600. Using trial and error I reckon that the monthly interest rate needed to give you approximately the same amount is 2.596%.

Hopefully someone will be along soon with a sure way of working it out.

prudentsaving42

Hungerdunger wrote: »

According to my calculations (which are probably wrong) you will end up with £183,600. Using trial and error I reckon that the monthly interest rate needed to give you approximately the same amount is 2.596%.

Hopefully someone will be along soon with a sure way of working it out.

That is the correct monthly interest figure.

To calcuate the compounded monthly interest of an annual monthly interest percentage use the following formula:

x = 12rt(1 + Percentage/100)

where 12rt is the twelth root.

To calculate the monthly interest of 6.0%:

x = 12rt(1 + 6/100) = 12rt(1.06) = twelth root of 1.06 = 0.4867%

To calculate the annual interest but paid monthly simply multiply the monthly interest by 12.

Have fun.

P.S. I truly hope nobody is borrowing at 36%

Hungerdunger

kenan557 wrote: »

x = 12rt(1 + Percentage/100)

Just out of interest is there a way of doing root calculations on a spreadsheet?

Lokolo

Rearrange the formula:

http://support.microsoft.com/kb/271143

Google is your friend.

KeithEssex_2

Hungerdunger wrote: »

Just out of interest is there a way of doing root calculations on a spreadsheet?

Example (In Excel)

12th root of 1.06

=1.06^(1/12)