HI everybody, and happy new year!
I have a couple questions regarding how to calculate compounded interest. Apologies beforehand because English is not my first language, and my message may be confusing. If so, let me know and I'll try to explain.
1.- I have a $5000 capital (P), which I'm investing for 10 years (t) at a 30% (r) annual (n) interest growth. How can I calculate what will my final capital (A) will be?
2.- I have a $5000 capital (P), to which I'm adding $100 every month, and I'm investing it for 10 years (t) at a 30% (r) annual (t) interest growth. How can I calculate what will my final capital (A) will be?
3.- I have a $5000 capital (P) that I want to increase by 50% (A = $7500) in 5 years (t) with constant annual (n) return (r). How can I calculate how much (in a percentage) I have to grow it each year to reach that final 50%?
I'm stuck in #2
Thanks!
I have a couple questions regarding how to calculate compounded interest. Apologies beforehand because English is not my first language, and my message may be confusing. If so, let me know and I'll try to explain.
1.- I have a $5000 capital (P), which I'm investing for 10 years (t) at a 30% (r) annual (n) interest growth. How can I calculate what will my final capital (A) will be?
I know that the formula for compound interest is A = P*(1+(r/n))nt so A = $5000 * (1+(0,3/1))1*10 = $68929,24
2.- I have a $5000 capital (P), to which I'm adding $100 every month, and I'm investing it for 10 years (t) at a 30% (r) annual (t) interest growth. How can I calculate what will my final capital (A) will be?
I'm lost here, I can do this manually, but I cannot deduce the formula for this.
3.- I have a $5000 capital (P) that I want to increase by 50% (A = $7500) in 5 years (t) with constant annual (n) return (r). How can I calculate how much (in a percentage) I have to grow it each year to reach that final 50%?
Using the previous equation (and n=1), I solve in Wolfram and get R = (3/2)^(1/5) - 1 ≈ 0,0844718
I'm stuck in #2
Thanks!