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#1
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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 |
#2
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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 |
#3
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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 ;-). |
#4
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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 |
#5
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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 ;-). |
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