Calculate For Me Please

[Connemmara]

I invested in an cash ISA no stockmarket business about 3 years ago - £8,000 - received statement today and it is up to £9,1060.

Can you tell me what 4% of £8,000 per annum. This what I would have received in the CU.

[chrissa1]

£960.00

[grasscarp]

960 with simple interest, and 998.91 with compound interest.

[SlackAlice]

£998.91 assuming compounded yearly.

[Connemmara]

I am sorry I added an nought to £9,1060 - it is actually £9,106 - another calculation please.

[SlackAlice]

Was the interest compounded yearly or monthly?

[grasscarp]

What do you mean another calculation? You asked what is 4% of 8000.
I think we realised you meant 9106 with reference to the cash ISA.

[Connemmara]

you are right grasscarp after I typed posting I realised you gave me the cal re the £8,000.

In your opinion - the cash isa is expiring 2016 - i know there are bonuses and ups and downs re this - would I better lifting it now and putting in CU where it could achieve 3%-4% per annum

[SlackAlice]

^^^
lol, we realised your error, so the figures won't change ☺☺

[SlackAlice]

Is the ISA continuing at 4%, highly unlikely the way interest rates are changing at the moment.

[grasscarp]

Personally I cant comment on what you should do for the future. As you can see it has performed well where it is. I think you have to be qualified to give financial advice.

[Connemmara]

grasscarp it only made over £1,000 in 3 years but in said CU - £960 x 3 years = £2880.

Also when I called into Santander re my visa card - he told me that the online ISA account was giving 0.5%.

[grasscarp]

It isnt 960 x 3. It is 320 x 3!

[Connemmara]

grass I thought it was £960 per annum where do you get the £360 x 3 as in CU figures.

[Connemmara]

as you can see hopeless re percentages

[SlackAlice]

Ist year 8000 x 4% = 320
2nd year 8320 x4% = 652.80
3rd year 8652.80 x 4% = 998.91

[grasscarp]

4% of 8000 = 320 pounds. so if it is simple interest you get another 4% each year ie. 320 x 3.
If it is compound interest, each year you work out the original sum plus the interest x 4% ie. 8320 x 4% for the second year etc
(My ISA rate of interest is worse than last year.)

[Connemmara]

thanks all for your patience - understand a little more now - think will leave isa well alone.

[SlackAlice]

Just make sure it continues at 4%. They have a nasty habit of reducing them.

[Connemmara]

well to all who answered I am sure it is not 4% but you certainly taught my percentages. When I was putting the money I have got I was actually dividing through Alice now I multiply by either 3% or 4% - no I don't think the ISAs are even matching that. Will give them a little buzz maybe today (sat) or Mon for curiousity sake.