Question

If you start to put $200 into your savings account at the end of each month, and you earn 2% interest on your savings, which time value formula would you use to calculate how much money will be in your account at the end of 5 years?

Answer 1

Answer:

You can calculate simple interest in a savings account by multiplying the account balance by the interest rate by the time period the money is in the account. Here's the simple interest formula: Interest = P x R x N. P = Principal amount (the beginning balance). ... Interest = $10,000 x 0.01 x 1, which equals $100.