Interest Question

[cupotee2]

I know I have help here before but my name slightly changed when I couldn't log in and now can't find the answer to know how to work out interest rates.....

how much interest will £11.730 @4.25% be over 2 years please.

[wolf63]

Is this you too?
http://www.theanswerbank.co.uk/members/cupotee/

[Buenchico]

£11730 x 1.0425 x 1.0425 = £12748.24

Gross interest = £12748.24 - £11730 = £1018.24

[factor-fiction]

To calculate 1% interest you divide the value of your fund at the start of the year by 100.
To scale this up to 4.25% you multiply the result by 4.25.
Add that interest to the capital you had at the start of the year and it gives you the value of your investment at the end of the year.
Repeat the process for the second year starting with the new investment value.

Buenchico has done it more efficiently of course but I'm trying to explain the steps