Alonzy100:
This is ordinary annuity whereby you make equal deposit every year compounded by 12%. wc means compounded principal fr d 1st yr is added to the next year's deposit and continue like dt till d end of the 20th yr.so based on my calculation the final amount is
#1,729,258.61865

got same answer but mine was point 8

[quote author=SarahD post=36994954]If you save 2000naira every month at 12% per year, you would have saved 24000 in the first year. Your interest for first year will be 2880naira and your money in will be 24000+2880= 26880.
In the second year, you will save an extra 24000, add it to 26880 of last yeat and your principal will be 50880. 12% of 50880 is 6105,6naira, you will now have 50880+6105.6, which gives you 56985.6 naira at the end of the second year.
In the third year, your principal will be 56985.6+another 24000 which is 80985.6naira. Then get 12% of that and you continue calculating it in that manner till you get to the 20th year.

Bravo

benedima1990:
Go study your compound interest formular well

Those mathematicians above me

It's not interest at the end of 20 years oooo

But each year.

So for every year, 12% of the amount saved will be added to the principal. Thereby moving the total forward to the next financial year *


I love mathematics

It is not even pure compound interest because you have to be adding the savings continuously.

Well, the amount to be carried forward to the next year includes the Old Principal+Interest+Savings. It's more of compounding an ''ENFORCED'' principal.

This is pure Economics not Mathematics to calculate just use this formulae. FUTURE WORTH= PRESENT VALUE( 1+ INTEREST RATE ^Number OF YEARS) I.e FV= PV (1 + r^20 )
Fv ?
Pv= #2000
r= 12% I.e 0.12 remember it's in %
n= 20years
Therefore, FV= 2000 (1+ 0.12^20) = 2000 ( 1.12^20)
2000 X 9.646293093 = #19,292.58619
Thank you all I think you are convinced now like if you love ❤ Economics + Mathematics

jackpot:
It is not even pure compound interest because you have to be adding the savings continuously.

Well, the amount to be carried forward to the next year includes the Old Principal+Interest+Savings. It's more of compounding an ''ENFORCED'' principal.

This is pure Economics not Mathematics to calculate just use this formulae. FUTURE WORTH= PRESENT VALUE( 1+ INTEREST RATE ^Number OF YEARS) I.e FV= PV (1 + r^20 )
Fv ?
Pv= #2000
r= 12% I.e 0.12 remember it's in %
n= 20years
Therefore, FV= 2000 (1+ 0.12^20) = 2000 ( 1.12^20)
2000 X 9.646293093 = #19,292.58619
Thank you all I think you are convinced now like if you love ❤ Economics + Mathematics

jackpot:
It is not even pure compound interest because you have to be adding the savings continuously.

Well, the amount to be carried forward to the next year includes the Old Principal+Interest+Savings. It's more of compounding an ''ENFORCED'' principal.

This is pure Economics not Mathematics to calculate just use this formulae. FUTURE WORTH= PRESENT VALUE( 1+ INTEREST RATE ^Number OF YEARS) I.e FV= PV (1 + r^20 )
Fv ?
Pv= #2000
r= 12% I.e 0.12 remember it's in %
n= 20years
Therefore, FV= 2000 (1+ 0.12^20) = 2000 ( 1.12^20)
2000 X 9.646293093 = #19,292.58619
Thank you all I think you are convinced now like if you love ❤ Economics + Mathematics

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 pure Economics not Mathematics to calculate just use this formulae. FUTURE WORTH= PRESENT VALUE( 1+ INTEREST RATE ^Number OF YEARS) I.e FV= PV (1 + r^20 )
Fv ?
Pv= #2000
r= 12% I.e 0.12 remember it's in %
n= 20years
Therefore, FV= 2000 (1+ 0.12^20) = 2000 ( 1.12^20)
2000 X 9.646293093 = #19,292.58619
Thank you all I think you are convinced now like if you love ❤ Economics + Mathematics

Alcheringa:

Explain please

This is pure Economics not Mathematics to calculate just use this formulae. FUTURE WORTH= PRESENT VALUE( 1+ INTEREST RATE ^Number OF YEARS) I.e FV= PV (1 + r^20 )
Fv ?
Pv= #2000
r= 12% I.e 0.12 remember it's in %
n= 20years
Therefore, FV= 2000 (1+ 0.12^20) = 2000 ( 1.12^20)
2000 X 9.646293093 = #19,292.58619
Thank you all I think you are convinced now like if you love ❤ Economics + Mathematics

u will recieve d sum of #231,507.54k at d end of 20yrs. correct answer

240 months in 20years ,so he saves 2000# every month, some total money saved is 480000# so the intrest every month is 240 for 20year is 57600 so 537600

irenmwinfo:
This is pure Economics not Mathematics to calculate just use this formulae. FUTURE WORTH= PRESENT VALUE( 1+ INTEREST RATE ^Number OF YEARS) I.e FV= PV (1 + r^20 )
Fv ?
Pv= #2000
r= 12% I.e 0.12 remember it's in %
n= 20years
Therefore, FV= 2000 (1+ 0.12^20) = 2000 ( 1.12^20)
2000 X 9.646293093 = #19,292.58619
Thank you all I think you are convinced now like if you love ❤ Economics + Mathematics

lol even without solving u'll knw its impossible for anybank to give you interest of 19million like u hve said, on a 480,000 deposit? , all tht formular won't work, ur answer is wrong

Op how can you post a question and it made front page and you have refused to tell us the answer? Tell us the answer abeg, or u don't knw it?

537600

Kennedyiheme:
infact maths formular has myb 1% effect on accounting, the formulars will jst end up givin u rubbish, without calculating, no sensible bank that tells u there rate of interest is 12% for 20yrs and still give u 1million interest, impossible, ap and gp no go see this one

The interest alone is 578400 according to my calculation.
Don't forget the 480,000 he has deposited already.

DesChyko:

The interest alone is 578400 according to my calculation.
Don't forget the 480,000 he has deposited already.

the question says the man deposits 2000 naira monthly which is 24000, with an annual interest of 12%, meaning the interest fr year one wld be 12% of 24000= 2880, multiply by 20yrs=57600..........if every bank gives there customer 19million as the total interest of the money the deposit tht isn't up to a million, don't you think the bank will rundown? Logically its impossible for a bank to give u 19million because u deposited 480,000

537600 ans

.

Kennedyiheme:
the question says the man deposits 2000 naira monthly which is 24000, with an annual interest of 12%, meaning the interest fr year one wld be 12% of 24000= 2880, multiply by 20yrs=57600..........if every bank gives there customer 19million as the total interest of the money the deposit tht isn't up to a million, don't you think the bank will rundown? Logically its impossible for a bank to give u 19million because u deposited 480,000

You're forgetting that all the money didn't come in at once. His first 2,000 is the only cash that spent 20 years in the bank. His last 2000 spent only a month before he withdrew everything.

The answer is 507.336

FV -> Future value ( after the period )
PV - Present value ( Total Money deposited )
CI-> Compond Interest
d -> monthly deposit ( Principal for the CI )
i -> annual nominal interest rate
t -> No. of years
n -> No. of times per year
Note that: nt -> [ n x t = 12 months x 20 years = 240 months is the period of investment]

FV = PV + CI

PV = d x nt
= 2000 X 12 months X 20 years
= 2,000 X 240 months = N480,000

CI ( Evaluated on the basis of monthly deposit )
= d ( 1 + i / n ) ^ nt
= 2,000 ( 1 + 0.12 / 12 )^ ( 12 X 20 )
= 2,000 ( 1 + 0.01 )^240
= 2,000 ( 1.01)^240
= 2,000 X 10.89255365387
= N21,785.11

:. FV = N480,000 + N21,785.11
= N501,785.11


Don Whest
( 07046890175 - SMS Only )

The right ans is 1,616,219

GlorianaCO:
The answer is 507.336

You are Close but I think this isn't the answer

Kennedyiheme:
lol even without solving u'll knw its impossible for anybank to give you interest of 19million like u hve said, on a 480,000 deposit? , all tht formular won't work, ur answer is wrong

There is formula for this. You only need apply it appropriately just as Don Whest have rightly done.

I think that's the right anwer

YEAR 01:
24000 X 0.12 = 2880
2880 + 24000 = N26,880.00

YEAR 02:
(26880 + 24000) X 0.12 = 6105.6
6105.6 + 26880 + 24000 = N56,985.6

YEAR 03:
(56985.6 + 24000) X 0.12 = 9718.3
9718.3 + 56985.6 + 24000 = N90,703.9

YEAR 04:
(90703.9 + 24000) X 0.12 = 13764.5
13764.5 + 90703.9 + 24000 = N128,468.4

YEAR 05:
N170,764.6

YEAR 06:
N218,136.4

....
....
....

YEAR 19:
(1498619.8 + 24000) X 0.12 = 182714.4
182714.4 + 1498619.8 + 24000 = N1,705,334.2

YEAR 20: (FINAL YEAR)
(1705334.2 + 24000) X 0.12 = 207520.1
207520.1 + 1705334.2 + 24000 = N1,936,854.3

Total Amount (Deposit + Interest) = N1,936,854.3
__________________________________________________

Pls anyone with proof of calculation that got a total return of ~ N1,930,000 - N1,980,000 is on the WINNING PATH. For others with funny, some unbelievable and absurd figures that defiles financial accounting, pls go back to school.

PLS OP STOP THIS MARATHON CONTINUUM AND RELEASE UR RESULTS FOR ALL TO COMPARE.

irenmwinfo:
This is pure Economics not Mathematics to calculate just use this formulae. FUTURE WORTH= PRESENT VALUE( 1+ INTEREST RATE ^Number OF YEARS) I.e FV= PV (1 + r^20 )
Fv ?
Pv= #2000
r= 12% I.e 0.12 remember it's in %
n= 20years
Therefore, FV= 2000 (1+ 0.12^20) = 2000 ( 1.12^20)
2000 X 9.646293093 = #19,292.58619
Thank you all I think you are convinced now like if you love ❤ Economics + Mathematics

Your result can not be realistic. Mathematics Can't be ruled out. Even your so called Economic Analysis is Mathematics. If not the banks Won't be able to automate the computations with there Software. Note that all Computations Automated in Accounting, Economics, Commerce, marketing, insurance, etc are all accomplished using mathematical formula in a given Computer program.

Check out Don Whest mathematical Analysis for the correct answer to the problem.

Na Maths and Computer program be the answer oo o to all Accounting and Economic automated Computations.

THE ANSWER IS: N19,982,958.38

SEE THE CALCULATION HERE: http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Year Year Deposits Year Interest Total Deposits Total Interest Balance

1 N240,000.00 N16,186.56 N240,000.00 N16,186.56 N256,186.56
2 N240,000.00 N48,677.43 N480,000.00 N64,863.99 N544,863.99
3 N240,000.00 N85,288.95 N720,000.00 N150,152.94 N870,152.94
4 N240,000.00 N126,543.73 N960,000.00 N276,696.68 N1,236,696.68
5 N240,000.00 N173,030.65 N1,200,000.00 N449,727.33 N1,649,727.33
6 N240,000.00 N225,413.28 N1,440,000.00 N675,140.61 N2,115,140.61
7 N240,000.00 N284,439.33 N1,680,000.00 N959,579.94 N2,639,579.94
8 N240,000.00 N350,951.37 N1,920,000.00 N1,310,531.31 N3,230,531.31
9 N240,000.00 N425,898.79 N2,160,000.00 N1,736,430.10 N3,896,430.10
10 N240,000.00 N510,351.43 N2,400,000.00 N2,246,781.53 N4,646,781.53
11 N240,000.00 N605,514.77 N2,640,000.00 N2,852,296.30 N5,492,296.30
12 N240,000.00 N712,747.20 N2,880,000.00 N3,565,043.50 N6,445,043.50
13 N240,000.00 N833,579.40 N3,120,000.00 N4,398,622.90 N7,518,622.90
14 N240,000.00 N969,736.14 N3,360,000.00 N5,368,359.03 N8,728,359.03
15 N240,000.00 N1,123,160.96 N3,600,000.00 N6,491,519.99 N10,091,519.99
16 N240,000.00 N1,296,043.89 N3,840,000.00 N7,787,563.88 N11,627,563.88
17 N240,000.00 N1,490,852.70 N4,080,000.00 N9,278,416.58 N13,358,416.58
18 N240,000.00 N1,710,368.15 N4,320,000.00 N10,988,784.72 N15,308,784.72
19 N240,000.00 N1,957,723.64 N4,560,000.00 N12,946,508.37 N17,506,508.37
20 N240,000.00 N2,236,450.01 N4,800,000.00 N15,182,958.38 N19,982,958.38

DesChyko:

You're forgetting that all the money didn't come in at once. His first 2,000 is the only cash that spent 20 years in the bank. His last 2000 spent only a month before he withdrew everything.

the question didn't say he withdrew anytin, the question is straight and simple. "How much interest will he get at the end of 20yrs for saving 2000 monthly, at 12%......no bank will give u 19million naira bccos u saved 480,000....it won't happen anywere in the world

DonWhest:


There is formula for this. You only need apply it appropriately just as Don Whest have rightly done.

the only formular is the accounting and economics way, those nonsense maths formular will put you in debts lol