Asked by Mike

you deposit $1000 at 3% per year.what is the balance at the end of one year,and what is the annual yield,if the interest.Please help solve the problem.

Simple interest?

Compounded annually?

Compounded quarterly

Compounded daily
Answered by MathMate
John,George,Mike or Lucky,
This is the same type of question as your previous question:
http://www.jiskha.com/display.cgi?id=1302748623

Study the previous response carefully and you will get the answer for this one easily.
If you need further help, post.

Answered by Mike
This one is qt different..i need more help..Thanks!
Answered by MathMate
For simple interest, and compounded yearly, at the end of one year, the interest is the same, as there is only one period.
interest rate = 1.03
Balance = PRN = 1000*1.03*1 = $1030
Interest = balance - principal = 1030-1000=$30

Principal = P = $1000

Compound interest
Compounded annually:
balance = PR<sup>n</sup> = 1000*1.03^1 = $1030
Interest = 1030-1000=$30

Compounded quarterly:
n = 12months/3months = 4
R = 1+0.03/4 = 1.0075
balance after 1 year
= PR^n
interest = PR^n-P

Compounded daily:
n=365
R=1+0.03/365
balance after 1 year
= PR^n
interest = PR^n-P
Answered by Mike
Thank you very much for your help!
Answered by Vanessa
PR^n-P
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