Full Version: Rate Of Interest
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pat2mat2003
If I save 1250 every month for 48 months and at the end I received 79000 from the Bank. what is the rate of interest i've received. (simple/compounded)

Pat.
mtn
I guess this should be it....

Savings = 1, 250
Tenure = 48 months
Total Savings = Savings x Tenure = 60, 000
Future Value = 79, 000
Interest Amount = Future Value - Total Savings = 19,000

Interest Rate (%) = Interest Amount (19,000) x 100/Total Savings (60,000)
= 31.67%


To check the accuracy

Take 31.67% of 1, 250 and that gives 395.88 as the interest amount per month. Multiply that by 48 months and it gives you 19,002 as the accumulated interest. Add this to your Total Savings and it will give you 79,002.

Then an off the air code should be something like this but not tested:

CODE
Function GetInterestRate(strSavings As Double, _
                        intmonths As Integer, _
                        strFutureValue As Double) As String

    Dim strTotalSavings As Double
    Dim strInterestAmount As Double
    Dim strTempVal As Double

    strTotalSavings = strSavings * intmonths
    strInterestAmount = strFutureValue - strTotalSavings
    strTempVal = (strInterestAmount * 100) / strTotalSavings

    GetInterestRate = strTempVal & "%"

End Function


With a quick test from your immediate window, you should get:

31.6666666666667%

from

? GetInterestRate(1250, 48, 79000)
pat2mat2003
thank you.
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