How much interest will I have earned over 3 years on a savings account balance of $85,000 on 4% interest?
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85000 * 1.04 * 1.04 *1.04 -85000
(copy it in google for calculation)http://www.google.ch/search?hl=fr&q=+850…
=10 613.44
Depends how the interest is paid. Interest can be compounded at various rates and time periods APR and Yield should both be known.
CDs is another secure way to save and stager the due dates so you always have funds available or coming due. You can also get brokered savings accounts for a little extra on rates.
Depends upon whether it is calculated as simple interest or compound interest. At simple interest: 85000x.04×3=10200.
At compound interest: 1st year -3400; 2nd year – 85000+3400=88400, x.04=3536; 3rd year – 88400+3536= 91936 x .04=3677.44; so interest earned for 3 years is the total interest amount: 3400+3536+3677.44 = 10,613.44 or a difference of 413.44 between simple and compound interest.
While you have already received MATHEMATICALLY correct answers. The real life answer is NO ONE leaves $85,000 in a savings account, and 4% is more than most savings accounts pay.
Depending on compounding, MS Excel gives me the following numbers.
NO compounding: $10,200.00
Annual compounding: $10,613.44
Semi annual compounding: $10,723.81
Quarterly compounding: $10,780.13
Monthly compounding: $10,818.11
NOTE: Your question asked about interest. I did NOT include the original $85,000 in any or these numbers.
I=Prt
I=(85000)x(3)x(.04)
I=10,200
$10,200 is the interest made
$10,613.44
a little over $15000
come on girl, dont be greedy, give it to starving in africa !