Question

help @GoldPhenoix

Answer 1

@koymoi

Answer 2

@dan815

Answer 3

whts up @GoldPhenoix ?

Answer 4

1st month 4000+4000*0.09=4360

Answer 5

2nd month 4360+4360*0.09=4752.4

Answer 6

3rd month 4752.4+4752.4*0.09=5180.1

Answer 7

@koymoi that sort of interest accrual happens only in your dreams :-)

the interest is not 9% per month, it is 9%, compounded monthly. the actual amount per month is 9%/12...

Answer 8

ahh, that makes sense

Answer 9

redo the computation using 0.09/12 instead of 0.09 and you should get the right answer. Or you could use the formula:
\[FV = PV*(1+i/n)^t\]where FV is the future value, PV is the present value, i is the nominal interest rate expressed as a decimal, n is the number of compounding periods per year, and t is the number of compounding periods. Here we have PV=4000, i=0.09, n = 12, t = 3 so the equation becomes

\[FV = 4000*(1+\frac{0.09}{12})^{3}\]

and despite the very high interest rate (you'd be lucky to get 1/4 of that today), after 3 months we've got less in the account than you predicted for 1 month. Sad, but true :-)