Georgia has $250 in her savings account. She makes a deposit of $75. What is her balance after the deposit?
Answers
Step-by-step explanation:
What is a Savings Account?
Saving accounts are a form of deposit account from a bank or credit union that typically earns interest. Usually saving accounts will earn higher interest than a checking account.
What is Interest?
Interest is money the bank pays into your account over time based on the balance of your account and the interest rate they offer on the account.
What is Compound Interest?
Compound interest is the addition of interest to the principal sum of your deposit amount, or in other words, interest on interest. In an account that pays compound interest, the return is added to the original principal at the end of every compounding period, typically daily or monthly.
What is Annual Percentage Yield (APY)?
Annual Percentage Yield (or APY), is the amount of compound interest an account earns in a year. The calculation is based on the account’s interest rate and the number of times interest is paid during the year. A savings account with the highest APY grows faster than an account with a lower yield.
What is a Money Market Account (MMA)?
A Money Market Account (or MMA) is a type of savings account that often offers higher interest rates in return for a higher minimum deposit, usually around $5,000 or more.
What should I look for when choosing a savings account?
High APY – Although this isn’t everything and you have to take into account fees and other factors such as accessibility to funds, but in general you want to get the highest possible return on your savings.
Low or No fees – Try to avoid accounts that charge fees, unless you’re happy the benefits of that account will outweigh any fees you will need to pay.
Flexible Deposits and Withdrawals – Choose a savings account that allows the right access to meet your needs. Most banks provide easy access to make both deposits and withdrawals, many also offer an online banking service, usually through the use of their online banking app.
Answer:
Savings Calculator Logo.
It can be difficult to put money into savings every month, but it may help you to know what the future value of your deposits will be. This calculator can help you determine the future value of your savings account.
First enter your initial investment and the monthly deposit you plan to make. Then provide an annual interest rate and the number of months you would like to consider. Press CALCULATE and you’ll get two numbers: the future value of your account and your total interest earnings. You can also set an income tax rate & inflation rate to see how those factors will impact your total amount saved and the spending power of your money. After calculating your returns you can click on the CREATE PRINTABLE REPORT button at the bottom of the calculator to generate a report. Financial institutions currently offering savers high-yield savings rates are listed below the calculator.
Calculator Rates
Initial Investment (Optional):
2000
Your Monthly Addition/Deposit:
100
Annual Interest Rate (APR %) View today's rates:
2.3
Months to Invest:
120
Income Tax Rate (%):
28
Annual Inflation Rate (%):
2
Future Savings:
Total Deposits:
Interest Earned:
Income Taxes Paid:
Savings After Taxes:
Future Value of Savings After Inflation:
Compounding Interest: The Future Value of Monthly Savings
500 Dollar Bill.
When you start planning for your financial future, you'll need to address compounding interest at some point. Contrary to popular belief, compounding isn't meant only for Wall Street gurus. It's beneficial to anyone who wants to invest in their futures. Compounding interest can help you create a comfortable retirement plan, and it can help you increase your investment returns over time.
What is Compounding Interest?
Essentially, compounding means that your interest is earning interest. Not only are you earning interest on your principal deposit, but you're also earning on the interest amount as well, so your principal deposit grows faster than if you just earned interest on the deposit alone. How often you compound determines how quickly your deposit grows, with more compounding periods resulting in greater interest accrued.
For example, let's say you deposit $2,000 into your savings account, and your bank gives you 5 percent interest annually. After a year, you've earned $100 in interest, bringing your balance up to $2,100. If you don't touch that extra $100, you can then earn $105 in annual interest, and so on.
To calculate compound interest, we use this formula: FV = PV x (1 +i)^n, where:
FV represents the future value of the investment
PV represents the present value of the investment
i represents the rate of interest earned each period
n represents the number of periods
The above calculator compounds interest monthly after each deposit is made. Deposits are applied at the beginning of each month. If you want to make deposits at the end of each month, then please subtract the first deposit from the initial savings amount. For example, if you had $1,000 saved up and wanted to deposit $100 at the end of the month you would set your initial deposit to $900.