compound interest
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compound interest
please could someone help me how to work out 1.06 to the power of 100.
Question is Harry's father put 1p into a bank account that pays interest of 6%. How much would he have after 100 years.
We applied the formula
Principal x (1 + 6/100) to the power of 100 but are stuck. Help.
Question is Harry's father put 1p into a bank account that pays interest of 6%. How much would he have after 100 years.
We applied the formula
Principal x (1 + 6/100) to the power of 100 but are stuck. Help.
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- Location: The Seaside
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- Posts: 12903
- Joined: Fri Sep 15, 2006 9:51 am
- Location: The Seaside
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- Posts: 1245
- Joined: Fri Jul 06, 2007 9:31 pm
On a simple, you get it free from the petrol station, calculator this is tricky.
On a slightly more functional calculator you should have a x^y button.
i.e. One number to the power of the other.
Incidentally, Google will do this for you...
Search for:
(1+0.06)^100=
Or if you are old fashioned... take logs, multiply by the 100 and then inverse logs!
Regards
SVE
PS
After 100 years the money in his bank will have increased by compound interest but this will possibly buy less due to inflation; I would recommend spreading his investment! Maybe some inflation linked saving product!!
On a slightly more functional calculator you should have a x^y button.
i.e. One number to the power of the other.
Incidentally, Google will do this for you...
Search for:
(1+0.06)^100=
Or if you are old fashioned... take logs, multiply by the 100 and then inverse logs!
Regards
SVE
PS
After 100 years the money in his bank will have increased by compound interest but this will possibly buy less due to inflation; I would recommend spreading his investment! Maybe some inflation linked saving product!!
Animis opibusque parati
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- Posts: 1245
- Joined: Fri Jul 06, 2007 9:31 pm
DD has a fx85ES as this was the one recommended at school. The policy was get an fx83ES or fx85ES if you want to be helped using your calculator. The fx85ES is a fx83ES with a solar cell.
Being keen on gadgets, when I bought DD's, I paid a few £ more to get myself a Casio fx-991ES which has some extra functions which I'm sure I will probably never use.
Regards
SVE
Being keen on gadgets, when I bought DD's, I paid a few £ more to get myself a Casio fx-991ES which has some extra functions which I'm sure I will probably never use.
Regards
SVE
Animis opibusque parati
-
- Posts: 12903
- Joined: Fri Sep 15, 2006 9:51 am
- Location: The Seaside