Posted by Mike on Thursday, April 14, 2011 at 10:45am.
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  MathMate, Thursday, April 14, 2011 at 11:10am
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  Mike, Thursday, April 14, 2011 at 2:33pm
This one is qt different..i need more help..Thanks!

Math  MathMate, Thursday, April 14, 2011 at 2:51pm
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 = 10301000=$30
Principal = P = $1000
Compound interest
Compounded annually:
balance = PR^{n} = 1000*1.03^1 = $1030
Interest = 10301000=$30
Compounded quarterly:
n = 12months/3months = 4
R = 1+0.03/4 = 1.0075
balance after 1 year
= PR^n
interest = PR^nP
Compounded daily:
n=365
R=1+0.03/365
balance after 1 year
= PR^n
interest = PR^nP

Math  Mike, Thursday, April 14, 2011 at 2:59pm
Thank you very much for your help!

Math  Vanessa, Friday, January 11, 2013 at 10:30am
PR^nP
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