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March 27, 2017

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you deposit $1000 at 3% per year.what is the balance at the end of one year,and what is the annual yield,if the interest.Please help solve the problem.

Simple interest?

Compounded annually?

Compounded quarterly

Compounded daily

  • Math - ,

    John,George,Mike or Lucky,
    This is the same type of question as your previous question:
    http://www.jiskha.com/display.cgi?id=1302748623

    Study the previous response carefully and you will get the answer for this one easily.
    If you need further help, post.

  • Math - ,

    This one is qt different..i need more help..Thanks!

  • Math - ,

    For simple interest, and compounded yearly, at the end of one year, the interest is the same, as there is only one period.
    interest rate = 1.03
    Balance = PRN = 1000*1.03*1 = $1030
    Interest = balance - principal = 1030-1000=$30

    Principal = P = $1000

    Compound interest
    Compounded annually:
    balance = PRn = 1000*1.03^1 = $1030
    Interest = 1030-1000=$30

    Compounded quarterly:
    n = 12months/3months = 4
    R = 1+0.03/4 = 1.0075
    balance after 1 year
    = PR^n
    interest = PR^n-P

    Compounded daily:
    n=365
    R=1+0.03/365
    balance after 1 year
    = PR^n
    interest = PR^n-P

  • Math - ,

    Thank you very much for your help!

  • Math - ,

    PR^n-P

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