Compound interest formula question

[Accipiter22]

Let's say I have 1000 dollars, I get interest daily, at a rate of 3%....what's the formula to see how much I would have at the end of the month? or at the end of the year even?

 

[z0mb13]

3% is yearly or daily?
if daily (also a month is 30 days):
1.03^30*$1000
if yearly, divide 3% by 365 days first

 

[FoBoT]

http://www.1728.com/compint.htm

$1002.50
Effective Annual Rate = 3.04532636 %

 

[krunchykrome]

Text

 

[Accipiter22]

Originally posted by: z0mb13
3% is yearly or daily?
if daily (also a month is 30 days):
1.03^30*$1000
if yearly, divide 3% by 365 days first

thanks! (it was daily)


thanks for the other replies too!

 

[thegimp03]

At the end of a year, you will have $1030.45.

FVn = P(1 + r/n)Yn
P is the principal
FV is the future value after Y (years)
n is 365

 

[mugs]

Originally posted by: Accipiter22

Originally posted by: z0mb13
3% is yearly or daily?
if daily (also a month is 30 days):
1.03^30*$1000
if yearly, divide 3% by 365 days first

thanks! (it was daily)


thanks for the other replies too!

Are you sure the daily interest rate is 3%? Is it possible that it's 3% annual interest, compounded daily? Even if this is just a homework problem, I don't think they'd give you such an unrealistic problem.

 

[z0mb13]

Originally posted by: mugs

Originally posted by: Accipiter22

Originally posted by: z0mb13
3% is yearly or daily?
if daily (also a month is 30 days):
1.03^30*$1000
if yearly, divide 3% by 365 days first

thanks! (it was daily)


thanks for the other replies too!

Are you sure the daily interest rate is 3%? Is it possible that it's 3% annual interest, compounded daily? Even if this is just a homework problem, I don't think they'd give you such an unrealistic problem.

yes 3% daily interest is VERY high

 

[JS80]

Originally posted by: z0mb13

Originally posted by: mugs

Originally posted by: Accipiter22

Originally posted by: z0mb13
3% is yearly or daily?
if daily (also a month is 30 days):
1.03^30*$1000
if yearly, divide 3% by 365 days first

thanks! (it was daily)


thanks for the other replies too!

Are you sure the daily interest rate is 3%? Is it possible that it's 3% annual interest, compounded daily? Even if this is just a homework problem, I don't think they'd give you such an unrealistic problem.

yes 3% daily interest is VERY high

$1 earning 3% per day for 2 years will result in $2.3 billion.

 

[WildHorse]

here's a good finance calculator that gets it right

some of the other ones on the web are built with oversimplified assumptions

 

[Cattlegod]

by compounded daily he probably means that they calculate the interest each day from a 3.0 percent yearly interest rate.

 

[JLGatsby]

I made a spreadsheet that does calculations for my trades (stocks).

I tell it how many trades I will make per year, the average return of each trade, and the rate at which it's taxed. It then it tells me if I keep that rate of return, what my end result will be over several years. Of course stock trading doesn't work that way but it gives perspective. It could also do a "daily" return with a few small changes.

Make one similar to mine, it's easy.