# Math

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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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