Thread: Interest

my problem is
I'm getting a savings account and if i put $1000.00 right now and the interst rate is of .20% in 50 years and 120 years how much money will i have in my account.

Originally Posted by lucas

my problem is
I'm getting a savings account and if i put $1000.00 right now and the interst rate is of .20% in 50 years and 120 years how much money will i have in my account.

i don't get where you said "in 50 years and 120 years", please clarify. also, clarify what type of interest we are dealing with, is it simple interest, compound interest etc?

It's a simple interest
My problem is
I want to buy a car that cost $104,900
and I'm putting $1000,00 in savings account that has a rate of .20%
my question is
in 50 years how much money will I have in the account?
in 120 years how much money will I have in the account?

Originally Posted by lucas

my problem is
I'm getting a savings account and if i put $1000.00 right now and the interst rate is of .20% in 50 years and 120 years how much money will i have in my account.

What is the problem?

1000(.002)(50) =100

1000(.002)(120)=240

Originally Posted by lucas

It's a simple interest
My problem is
I want to buy a car that cost $104,900
and I'm putting $1000,00 in savings account that has a rate of .20%
my question is
in 50 years how much money will I have in the account?
in 120 years how much money will I have in the account?

was 0.2% a typo?

if not

1000(0.2)(50)=10000
1000(0.2)(120)=24000

Originally Posted by Jhevon

was 0.2% a typo?

if not

1000(0.2)(50)=10000
1000(0.2)(120)=24000

Slight error: that's for 20%, not .2%.

Originally Posted by AfterShock

Slight error: that's for 20%, not .2%.

Ah, yes, forgive me, TPH's solution is correct. I should have taken the hint when my answer was different from his

maybe i'll get a thanks for trying

Shudnt it be calculated as follows?

A = P(1 + R)^t

A = 1000(1 + 20/100)^50
A = 9 100 438.15

A = 1000(1 + 20/100)^120
A = 3175 042 374 000

Hmm, y do the numbers seem a lil too big? Although i must admit 20% interest isnt bad at all.