I need help with a compound interest equation p * (1 +r/100)^y. I can never get the right answer using the given values.
year 1: payment=1000 interest rate=5% years=1
year 2: p=1050 r=5% y=2
where the p is the answer of the previous year.

Question

I need help with a compound interest equation p * (1 +r/100)^y. I can never get the right answer using the given values. 
year 1: payment=1000 interest rate=5% years=1
year 2: p=1050 r=5% y=2
where the p is the answer of the previous year.

johan14th · Answer

thanks for the help.

welshfella · Answer

what do you want - the balance after 2 years?

johan14th · Answer

yes i seem to get 1050 for the first year which is ight but i cant seem to get the second year

phi · Answer

how did you calculate the 2nd year ?
you can do either
$$ 1000 \cdot 1.05^2 $$
or
$$ 1050 \cdot 1.05$$