How much interest earned over 3 years on a $85,000 savings account on 4% interest?

[Janet A]

How much interest will I have earned over 3 years on a savings account balance of $85,000 on 4% interest?

[Martin the baby]

come on girl, dont be greedy, give it to starving in africa !

[todg]

I=Prt

I=(85000)x(3)x(.04)
I=10,200

$10,200 is the interest made

[STEVEN F]

While you have already received MATHEMATICALLY correct answers. The real life answer is NO ONE leaves $85,000 in a savings account, and 4% is more than most savings accounts pay.

Depending on compounding, MS Excel gives me the following numbers.
NO compounding: $10,200.00
Annual compounding: $10,613.44
Semi annual compounding: $10,723.81
Quarterly compounding: $10,780.13
Monthly compounding: $10,818.11

NOTE: Your question asked about interest. I did NOT include the original $85,000 in any or these numbers.

[rnwallace07]

Depends upon whether it is calculated as simple interest or compound interest. At simple interest: 85000x.04x3=10200.
At compound interest: 1st year -3400; 2nd year - 85000+3400=88400, x.04=3536; 3rd year - 88400+3536= 91936 x .04=3677.44; so interest earned for 3 years is the total interest amount: 3400+3536+3677.44 = 10,613.44 or a difference of 413.44 between simple and compound interest.

[rolevr]

85000 * 1.04 * 1.04 *1.04 -85000
(copy it in google for calculation)

http://www.google.ch/search?hl=fr&q=+85000+*+1.04+*+1.04+*1.04+-85000&btnG=Recherche+Google&meta=lr%3Dlang_fr

=10 613.44

[Biggie @ Arbor Mortgage]

$10,613.44

[oscar1962]

a little over $15000