Question
If I save 250 pounds each month at the annual interests rate of 4%, how much interests will I get after a year?
Answers (1)
by Jeong-Ho Lee 13 years ago
You can calculate each month interests and then add up all to find the solution.
1st month interests: 250 x 0.04 x (12 / 12) = 10
2nd month interests: 250 x 0.04 x (11 / 12)
...
12th month interests: 250 x 0.04 x (1 /12)
Sum of all above is the interests you will get after a year.
250 x 0.04 x (12 + 11 + 10 + ... + 1) / 12 = 250 x 0.04 x 78 / 12 = 65
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