Formulas

[MCGF]

Hallo!

A little help please u wonderful people!

Its my own fault because i didnt pay much attention during A-Level maths

But could anyone tell me if there are any formulas for working out how much money i will have if i have a set compounded interest rate over a certain period of time?

E.G I start with £1000 and interest compounds at 10% how much will I have in 10 years time

If someone could help me by letting me know how i find that and how i work backwards as well, would be much appreciated!

 

[FTSE Beater]

Hi MCGF

eek This brings back memories

The formula to work it out going forwards is
Amount of money x ((1+(% rate^years))

Well you did ask

So in your example it's

1000 x (1.1^10) = 2593.74

To go backwards from 2593.74 to 1000 would be

Amount ÷ ((1+ % rate)^years)

so.....

2593.74 ÷ (1.1^10) = 1000

Has that totally confused you?
If so I'll explain it again

 

[Kilnside]

FB

Well done. Sometimes you just want a rough idea - say how many days to double my SB account. Divide the rate into 70 so 1000 (or any amount) at 10% compound takes 7 years to double.

Regards

 

[MCGF]

Yes thank u!

I knew it were something simple really! LOL

Thanks for ur help-much appreciated!

 

[ChartMan]

Enter compound interest calcualtor in GOOGLE....
It's amazing how little time it takes to make a fortune at just 2 or 3 % per week. Consistency is the key. +20 one week and - 19 the next is no good......