i think that's not correct. he's calculating by monthly basis.

i forgot my maths formula is secondary school but what he means should be

Month1 : 5000 x 0.031 + 5000 = 5155
Month2 : 5155 x 0.031 + 5155 = 5314.81
Month3 : 5314.81 x 0.031 + 5314.81 = 5479.56
and so on... anyone knows what kind of formula is this again?

BTW where do you get 3.1% interest per MONTH?? I'm also VERY interested. Most banks gives such interest by YEARLY basis, so you need to divide 12 again oh..

This post has been edited by hivemy: May 5 2008, 07:55 AM

i think that's not applicable for compounding interest.

i found a calculator at http://www.csgnetwork.com/compoundsavingsintcalc.html

not sure if it's accurate tho.. 5000 become 9207.53 after 20 years, i rather invest in stock for 10 years.

TS want to compound to 20 years (240 months)
Let's assuming 1 year has 365 days
What is the formula to count compounding interest for 7300 days?