post office 4.10%

[jrtv]

Its me again, don't know how to work these percentages out, what would I get back if I put £10,000 into the Post Office over 3 years in a growth bond at 4.10% fixed interest.

[sandyRoe]

About 1300 plus your initial investment

[Buenchico]

Assuming annualised compound interest, you should get £11,281.12

Chris

[factor-fiction]

Yes, I agree with Buenchico's figure.
The calculation is similar to the last one but because interset is 4.1% the figure you multiply by each year is 1.041 , and the number of years is 3.
The calculation is: 10000 x 1.041³

Look at it this way.
In year 1 the interest is 4.1% of £10000 = £410. So the balalnce at the end of year 1 is £10410.
In year 2 the interest is 4.1% of the £10410 which is £426.81. This makes the year end balance at the end of year 2 equal to 10410+426.81= £10836.81
In year 3 the interest is 4.1% of £10836.81 which is £444.31, The balance at the end of year 3 is therefore 10836.81+444.31 =£11281.12

Just adjust the figures depending on your interest rate and number of years.

Excel is good for these. In your latest example I used the formula =10000*1.041^3

Hope this helps. Buenchico may be able to explain it better

[Whoever]

That's assuming there's any growth in the economy! I'm not sure how this particular bond works but with many of them you could end up just getting your money back and nothing more after three years if we dip back into recession again.