Working out how much interest

[jamesnan]

I am trying to work out the difference on interest received and am not at all sure how much it would be.
If the Gross interest is 2.67% how much would the monthly interest be, and if it was 3.40% what would that figure be, on an amount of £45,500.
Also 3.40% compared with 3.64% on the same amount.
If anyone can help me with this I would be very grateful.

[boxtops]

You multiply £45,500 x 2.67%, and so on.

[sunny-dave]

and divide by 12 ...

[jamesnan]

Tried that and came up with a figure of 10012.5 , what the hell does that mean?

[sunny-dave]

45,500 times 2.67 divided by 100 = £1214.85 per year

1214.85 divided by 12 = £101.23 per month

[Psybbo]

should it be £455*2.67 erc.?

[HowardKennitby]

If X is the amount and Y is the gross interest then

multiply X by Y and divide by 100. That gives the annual gross interest.

[Psybbo]

and then divided by 12

[dzug2]

It's not at all clear whether those percentages are monthly or annual rates - is this a loan or savings?

[jamesnan]

We are trying to work out for some savings we have, and it is time to renew the bond etc. It is necessary to have monthly income from it, but not sure whether it would be worth topping up to £50,000 to get that much more, or just leave it present amount. The figures quoted are the monthly amount . As it is the quotes are almost half of what we were offered in 2009!
Maths are not my strong point, perhaps I should ask my grandson!!!

[factor-fiction]

Dzug- these will be annual rates on savings not monthly rates on loans as the OP refers to interest received.

£[email protected]% pa gives interest of £1201.50 pa (equivalent to £100.13 a month but they may pay a bit less if you withdraw it monthly- it depends on the Ts and Cs)
£[email protected]% pa gives interest of £1530 pa (£127.50 a month)
£[email protected]% pa gives interest of £1638 pa (£136.50 a month)

There are online calculators for calculating interest for those who don't know how to work out percentages. There are also sites which explain how to do day to day maths calculations like this.

To find 1% of any figure you simply divide by 100. So, 1% of £45000 is £450.
You can then scale the figure up or down to work out whatever % you want. If you want 3.64% you multiply your 1% figure by 3.64.

On most calculators you simply press 45000 x 3.64%= and you will get 1638.

[jamesnan]

Thank you for all the answers. Very helpful