8 Comments

  1. rolevr
    Posted November 17, 2009 at 5:51 am | Permalink

    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

  2. Anonymous
    Posted November 17, 2009 at 6:35 am | Permalink

    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.

  3. rnwallac
    Posted November 17, 2009 at 12:26 pm | Permalink

    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.

  4. STEVEN F
    Posted November 17, 2009 at 12:36 pm | Permalink

    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.

  5. todg
    Posted November 17, 2009 at 1:36 pm | Permalink

    I=Prt
    I=(85000)x(3)x(.04)
    I=10,200
    $10,200 is the interest made

  6. Biggie @ Arbor Mortgage
    Posted November 17, 2009 at 7:36 pm | Permalink

    $10,613.44

  7. oscar196
    Posted November 18, 2009 at 12:42 am | Permalink

    a little over $15000

  8. Martin the baby
    Posted November 18, 2009 at 2:57 am | Permalink

    come on girl, dont be greedy, give it to starving in africa !

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