compound
 

hello community

can anybody teach me how to find how much will i have at the end of 5 years???

example:

I want to save $5000 at 4% per annum for 5 years. How to derive a formula
to find out how much will i have at the end of the 5th years.

thanks community for the assistance given
--
oldLearner57

compound
 

5,000 * 1.04^5

--
Regards;
Rob
------------------------------------------------------------------------
"tikchye_oldLearner57" wrote in message
...
hello community

can anybody teach me how to find how much will i have at the end of 5 years???

example:

I want to save $5000 at 4% per annum for 5 years. How to derive a formula
to find out how much will i have at the end of the 5th years.

thanks community for the assistance given
--
oldLearner57

compound
 

RWN wrote:
"tikchye_oldLearner57" wrote:
can anybody teach me how to find how much will i have at the end of 5 years???
example:
I want to save $5000 at 4% per annum for 5 years. How to derive a formula
to find out how much will i have at the end of the 5th years.

5,000 * 1.04^5

Equivalently:

=fv(4%, 5, 0, -5000)

However, that assumes only annual compounding. That would be
appropriate if 4% is the APY. But if it is the nominal rate and if the
OP is talking about a savings account in the US, we might expect daily
compounding at the rate of 4%/365. In that case:

=fv(4%/365, 5*365, 0, -5000)

A difference of nearly $24 ;-).

compound
 

thanks RWN for the solution, that was cool :)
--
oldLearner57


"RWN" wrote:

5,000 * 1.04^5

--
Regards;
Rob
------------------------------------------------------------------------
"tikchye_oldLearner57" wrote in message
...
hello community

can anybody teach me how to find how much will i have at the end of 5 years???

example:

I want to save $5000 at 4% per annum for 5 years. How to derive a formula
to find out how much will i have at the end of the 5th years.

thanks community for the assistance given
--
oldLearner57

compound
 

thanks joeu2004 :)
--
oldLearner57


" wrote:


RWN wrote:
"tikchye_oldLearner57" wrote:
can anybody teach me how to find how much will i have at the end of 5 years???
example:
I want to save $5000 at 4% per annum for 5 years. How to derive a formula
to find out how much will i have at the end of the 5th years.

5,000 * 1.04^5

Equivalently:

=fv(4%, 5, 0, -5000)

However, that assumes only annual compounding. That would be
appropriate if 4% is the APY. But if it is the nominal rate and if the
OP is talking about a savings account in the US, we might expect daily
compounding at the rate of 4%/365. In that case:

=fv(4%/365, 5*365, 0, -5000)

A difference of nearly $24 ;-).