On September 1st, 1926, my Great Grandmother invested $25.00 in the Italian club she belonged to, now they are paying it back as the club is dissolving. The interest rate is 4 percent compounded twice per year, on March 1st and September 1st each year. Didn't find any interest calculators on Google that worked with this.
$25.00 x 1.04 x 1.04 x 1.04 x 1.04 x 1.04 x 1.04 ...... do this ~165 times
or 25.00 x (1.04)^165
edit: roughly $16,200.00
or 25.00 x (1.04)^165
edit: roughly $16,200.00
Last edited by S.Lythberg (2009-03-28 09:08:48)
- Superior Mind
- (not macbeth)
- +1,755|7122
According to this: 25.00 x (1.04)^165
$16,159.99 (rounded to the nearest cent)
$16,159.99 (rounded to the nearest cent)
Does that work if 4% is gonna be payed on top of the interest already earned as well, or is that just gonna do 4% on $25 165 times?S.Lythberg wrote:
$25.00 x 1.04 x 1.04 x 1.04 x 1.04 x 1.04 x 1.04 ...... do this ~165 times
or 25.00 x (1.04)^165
I was expecting close to 600, thats what the one interest calculator gave me, but that was only once a year...Superior Mind wrote:
According to this: 25.00 x (1.04)^165
$16,159.99 (rounded to the nearest cent)
I thought this would be about adding thermal paste to a processor.
EDIT: If it was once a year, the number would be about 630.
EDIT: If it was once a year, the number would be about 630.
Last edited by NooBesT (2009-03-28 09:13:39)
interest is tabulated based on the current balance, so it is cumulative, not based on the original amountCommie Killer wrote:
Does that work if 4% is gonna be payed on top of the interest already earned as well, or is that just gonna do 4% on $25 165 times?S.Lythberg wrote:
$25.00 x 1.04 x 1.04 x 1.04 x 1.04 x 1.04 x 1.04 ...... do this ~165 times
or 25.00 x (1.04)^165I was expecting close to 600, thats what the one interest calculator gave me, but that was only once a year...Superior Mind wrote:
According to this: 25.00 x (1.04)^165
$16,159.99 (rounded to the nearest cent)
enjoy your monies, 4% for 82 years is an amazing amount of interest (as you can see).
Holy shit its actually 16 grand?
That will buy a lot of thermal paste.
That will buy a lot of thermal paste.
Last edited by Commie Killer (2009-03-28 09:18:09)
srs, unless there's some sort of capCommie Killer wrote:
Holy shit its actually 16 grand?
Well god damn. Thanks for all the help.
Wiki = friend
A= P[1 + (r/k)]kt where r= interest rate, p=principle, k=# times compounded, t=time.
A= 25[1 + (.04/2)](2*82) = $643.23
A= P[1 + (r/k)]kt where r= interest rate, p=principle, k=# times compounded, t=time.
A= 25[1 + (.04/2)](2*82) = $643.23
Last edited by DesertFox- (2009-03-28 09:20:29)
that gives him 2% compounded every six months. does he get 2% or 4% with each interst period? consult the fine print before buying that new carDesertFox- wrote:
Wiki = friend
A= P[1 + (r/k)]kt where r= interest rate, p=principle, k=# times compounded, t=time.
A= 25[1 + (.04/2)](2*82) = $643.23
4% with each period.
Its split between all the kids, and in the case of their death, the grand kids. I don't get any though cause I'm one of the great grand kids.
Its split between all the kids, and in the case of their death, the grand kids. I don't get any though cause I'm one of the great grand kids.
Last edited by Commie Killer (2009-03-28 09:30:47)
so 4% every six months?Commie Killer wrote:
4% with each period.
that is a hell of an interest rate, I guess the program was intended for short term use.
20 years at most, heard that the money put in was to help pay for renovations and additions.S.Lythberg wrote:
so 4% every six months?Commie Killer wrote:
4% with each period.
that is a hell of an interest rate, I guess the program was intended for short term use.
and commie's thermal paste, now thats foresightCommie Killer wrote:
20 years at most, heard that the money put in was to help pay for renovations and additions.S.Lythberg wrote:
so 4% every six months?Commie Killer wrote:
4% with each period.
that is a hell of an interest rate, I guess the program was intended for short term use.
They were pretty religious, god must of told them I was coming.S.Lythberg wrote:
and commie's thermal paste, now thats foresightCommie Killer wrote:
20 years at most, heard that the money put in was to help pay for renovations and additions.S.Lythberg wrote:
so 4% every six months?
that is a hell of an interest rate, I guess the program was intended for short term use.
i can haz 1 grand?
They give you the 4% annual interest rate, and it's compounded twice per year. Didn't you people have to do this when you took algebra or pre-calc?S.Lythberg wrote:
that gives him 2% compounded every six months. does he get 2% or 4% with each interst period? consult the fine print before buying that new carDesertFox- wrote:
Wiki = friend
A= P[1 + (r/k)]kt where r= interest rate, p=principle, k=# times compounded, t=time.
A= 25[1 + (.04/2)](2*82) = $643.23
he never said it was an annual rateDesertFox- wrote:
They give you the 4% annual interest rate, and it's compounded twice per year. Didn't you people have to do this when you took algebra or pre-calc?S.Lythberg wrote:
that gives him 2% compounded every six months. does he get 2% or 4% with each interst period? consult the fine print before buying that new carDesertFox- wrote:
Wiki = friend
A= P[1 + (r/k)]kt where r= interest rate, p=principle, k=# times compounded, t=time.
A= 25[1 + (.04/2)](2*82) = $643.23
and algebra was so 8th grade
grandmas ftw
Is it interest in line with inflation? If so, lots. If not, well still quite nice.
When don't people give the annual interest rate? It's the most common one used. Algebra was so 8th grade though, hence why people should know it.
learning math causes the loss of previously learned mathDesertFox- wrote:
When don't people give the annual interest rate? It's the most common one used. Algebra was so 8th grade though, hence why people should know it.
differential equations and matrix thery has caused me to lose the ability to add, subtract, multiply, and divide.
600 dollars isnt bad either though (although inflation adjusted I think they may have lost money, lol)
"4% compounded twice per year" I think is what it says on the contract.
Compound means additional, so that makes it pretty easy:Commie Killer wrote:
"4% compounded twice per year" I think is what it says on the contract.
$25 at 1926 ... 2009 (83 years ... 166 compound interest payments)
$25 x 1.04^166 (4% compound interests payments by 166 times)
= $16,806.39
Last edited by kylef (2009-03-28 12:14:46)