The Naked Scientists
Toggle navigation
Login
Register
Podcasts
The Naked Scientists
eLife
Naked Genetics
Naked Astronomy
In short
Naked Neuroscience
Ask! The Naked Scientists
Question of the Week
Archive
Video
SUBSCRIBE to our Podcasts
Articles
Science News
Features
Interviews
Answers to Science Questions
Get Naked
Donate
Do an Experiment
Science Forum
Ask a Question
About
Meet the team
Our Sponsors
Site Map
Contact us
User menu
Login
Register
Search
Home
Help
Search
Tags
Member Map
Recent Topics
Login
Register
Naked Science Forum
General Discussion & Feedback
Just Chat!
Arithmetic
« previous
next »
Print
Pages: [
1
]
Go Down
Arithmetic
6 Replies
2054 Views
0 Tags
0 Members and 1 Guest are viewing this topic.
syhprum
(OP)
Naked Science Forum King!
5198
Activity:
0%
Thanked: 74 times
Arithmetic
«
on:
02/05/2019 19:35:18 »
Can any of the correspondent on the forum do simple arithmetic , I invested £250.00 per month with my bank and was promised 5% interest after 12 months A very simplistic calculation shows that for and average sum of £1500.00 invested for 12 months at 5% I would have received £75.00 but I was pleased to receive £77.53.
How did the bank get to this figure.
Logged
Bored chemist
Naked Science Forum GOD!
30351
Activity:
13%
Thanked: 1217 times
Re: Arithmetic
«
Reply #1 on:
02/05/2019 19:47:07 »
My best guess is that they calculate the interest monthly.
Logged
Please disregard all previous signatures.
syhprum
(OP)
Naked Science Forum King!
5198
Activity:
0%
Thanked: 74 times
Re: Arithmetic
«
Reply #2 on:
03/05/2019 06:49:15 »
What my simplistic calculation fails to take account of is the increase in value of the sum on which the interest is calculated as the accumulated interest is added, a google hunt brought up the true algorithm which looks very complex to one such as myself but can no doubt be handled by a computer routine.
Logged
Bored chemist
Naked Science Forum GOD!
30351
Activity:
13%
Thanked: 1217 times
Re: Arithmetic
«
Reply #3 on:
03/05/2019 09:22:34 »
Does this help?
https://en.wikipedia.org/wiki/Compound_interest
Logged
Please disregard all previous signatures.
syhprum
(OP)
Naked Science Forum King!
5198
Activity:
0%
Thanked: 74 times
Re: Arithmetic
«
Reply #4 on:
03/05/2019 11:48:33 »
Wiki is always a great source of information, there are many sites that offer plug in calculators which all give a figure of £82.80 with the proviso that banks may delay in adding the interest at the start of the calculation.
many thanks for your interest.
Logged
Bored chemist
Naked Science Forum GOD!
30351
Activity:
13%
Thanked: 1217 times
Re: Arithmetic
«
Reply #5 on:
03/05/2019 12:15:40 »
Quote from: syhprum on 03/05/2019 11:48:33
many thanks for your interest.
Groan!
Logged
Please disregard all previous signatures.
syhprum
(OP)
Naked Science Forum King!
5198
Activity:
0%
Thanked: 74 times
Re: Arithmetic
«
Reply #6 on:
04/05/2019 13:50:20 »
I repeated the calculation using the correct formula for interest compounded daily and used Mathmetica software calculator as raising numbers to the power of 365 is rather a strain on a pocket calculator !
assuming the interest was paid at he end of the year I get £76.905 but if I allow an extra 3 days until the money actually went into my account I get £77.55 which is close enough.
Logged
Print
Pages: [
1
]
Go Up
« previous
next »
Tags:
There was an error while thanking
Thanking...