Mathematics and I will never be friends......... I don't know anything in mathematics

Amount at maturity=# 1,860,953.02
Total deposit=# 482000
Total interest=# 1,378,953.02

537600

It is close to 537,600 but the bank is still going to charge VAT as a standard procedure

walexy30:
I save N2000 every month in a bank with an annual interest rate of 12% for 20 years while still working. How much will i receive at the end of the period (20 years).

This is one of the cheapest business maths bros. NPV has to come to secondary scl level.

480000

sureguy02:
The monthly interest rate is 1%

Fv = pv ((1+r)ⁿ-1)/r

Fv = 2,000[(1+0.1)²⁴⁰-1]/0.1

=N1,978,510.73

r = 0.01 NOT 0.1

Mobi47:
interesting....and if u solve it, what would ur answer b?

do you need the step...

12 percent annual interest on ur savings of 2000 monthly. days 24,000 monthly. 12 percent of 24000 is 2880. so u shed get 2880 with of interest every year x 20 years is 57,600.

19292.5862 F = P(1+i)^20

1,936,769 approximate..whew hope am correct op

Use M = A X Y ( 12 ) divided 240

530400

walexy30:


This is not simple interest you learnt in JSS classes, this is maths of finance (applied)

mr man, he's correct, 2000 each month, that is 12*2000=24,000. For 20yrs 24,000x20=480,000, 12percent of 480,000 is 57600, so the total money the person wld receive for saving with the bank is 480,000+57600=537600

OP,i got 537600 as the answer...who will employ me?

walexy30:
You can see the power compounding, N2,000 savings every month with assumed interest rate of 12% will fetch you N1,978,510.72k in the next twenty years.

Maths is good! i love it especially financial maths.

Thanks bro. I only came here to see how profitable it is. Tho 20 years is way too long for me. Haba, on top wetin. Abeg help me calculate my money after 2 years. Make it 100k savings. Thanks

...

Years
1 = 2000 × 12 = 24000 + 12% interest rate which is 2400 that is = 26400

Year 2
Account balance is 26400, so + the 2000 × 12 which is 24000, now this is the trick, you + the balance of last year with this year which is 26400 + 24000 = 50400, now you add the 12% interest rate. The 12%interest rate of 50400 is = 5033.3 so we add both which is 50400 + 5033.3 = 55433.3

You do that continuesly to the 20years and you get the answer.

dayodare49o:
This is one of the cheapest business maths bros. NPV has to come to secondary scl level.

Solve it and let's see the answer

[size=14pt]
I can solve d question but I won't bother Sha cos it won't add any value to me to do dat. But I can give other willing pple d necessary pointers.

Ordinarily u can solve d question using simple annuity but then given that the deposit is done monthly, it becomes a bit more complex for those who do not fully grasp d concept of simple annuity. So, to solve d question in such a way that the layman will understand, simple model it in Microsoft excel. U shud get the answer in exactly 2 mins if u understand excel very well
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Lol.. future value.. Did this in mathematics of finance

7791.95198

nobosaba:
Years
1 = 2000 × 12 = 24000 + 12% interest rate which is 2400 that is = 26400

Year 2
Account balance is 26400, so + the 2000 × 12 which is 24000, now this is the trick, you + the balance of last year with this year which is 26400 + 24000 = 50400, now you add the 12% interest rate. The 12%interest rate of 50400 is = 5033.3 so we add both which is 50400 + 5033.3 = 55433.3

You do that continuesly to the 20years and you get the answer.

Even if is 1,000 years, then it will take you a lifetime to get the answer.

Kennedyiheme:
mr man, he's correct, 2000 each month, that is 12*2000=24,000. For 20yrs 24,000x20=480,000, 12percent of 480,000 is 57600, so the total money the person wld receive for saving with the bank is 480,000+57600=537600

lol its mathematics of finance. . There is a formular for future value:

A (1+r)^n

obstead200:
[size=14pt]
I can solve d question but I won't bother Sha cos it won't add any value to me to do dat. But I can give other willing pple d necessary pointers.

Ordinarily u can solve d question using simple annuity but then given that the deposit is done monthly, it becomes a bit more complex for those who do not fully grasp d concept of simple annuity. So, to solve d question in such a way that the layman will understand, simple model it in Microsoft excel. U shud get the answer in exactly 2 mins if u understand excel very well
[/size]

Solve it manually.

N144,104.88

walexy30:
I save N2000 every month in a bank with an annual interest rate of 12% for 20 years while still working. How much will i receive at the end of the period (20 years).

Savings for a yr = 2000 * 12 = 24000 ; earnings for the yr 24000 * 0.12= 2880 + 24000 = 26,880
Total earnings = 26,880 * 12 = NGN322,660

N1,748,551.20, assuming yearly compounding.

walexy30:
I save N2000 every month in a bank with an annual interest rate of 12% for 20 years while still working. How much will i receive at the end of the period (20 years).

N528,456

192925.5862..... 100% sure... compounding the time value of money...

eltonesworld:
1,936,769 approximate..whew hope am correct op

No!