There are a number of financial calculations that are often performed using tables. These are generally used to save calculation.
The following table shows the compound interest amounts produced by $1000 compounded monthly over various periods.
| Rate (%) | 2 | 2.5 | 3 | 3.5 | 4 | 4.5 | 5 | 5.5 |
| Month | ||||||||
| 1 | $1,001.67 | $1,002.08 | $1,002.50 | $1,002.92 | $1,003.33 | $1,003.75 | $1,004.17 | $1,004.58 |
| 2 | $1,003.34 | $1,004.17 | $1,005.01 | $1,005.84 | $1,006.68 | $1,007.51 | $1,008.35 | $1,009.19 |
| 3 | $1,005.01 | $1,006.26 | $1,007.52 | $1,008.78 | $1,010.03 | $1,011.29 | $1,012.55 | $1,013.81 |
| 4 | $1,006.68 | $1,008.36 | $1,010.04 | $1,011.72 | $1,013.40 | $1,015.08 | $1,016.77 | $1,018.46 |
| 5 | $1,008.36 | $1,010.46 | $1,012.56 | $1,014.67 | $1,016.78 | $1,018.89 | $1,021.01 | $1,023.13 |
| 6 | $1,010.04 | $1,012.57 | $1,015.09 | $1,017.63 | $1,020.17 | $1,022.71 | $1,025.26 | $1,027.82 |
| 7 | $1,011.73 | $1,014.67 | $1,017.63 | $1,020.60 | $1,023.57 | $1,026.55 | $1,029.53 | $1,032.53 |
| 8 | $1,013.41 | $1,016.79 | $1,020.18 | $1,023.57 | $1,026.98 | $1,030.40 | $1,033.82 | $1,037.26 |
| 9 | $1,015.10 | $1,018.91 | $1,022.73 | $1,026.56 | $1,030.40 | $1,034.26 | $1,038.13 | $1,042.01 |
| 10 | $1,016.79 | $1,021.03 | $1,025.28 | $1,029.55 | $1,033.84 | $1,038.14 | $1,042.46 | $1,046.79 |
| 11 | $1,018.49 | $1,023.16 | $1,027.85 | $1,032.56 | $1,037.28 | $1,042.03 | $1,046.80 | $1,051.59 |
| 12 | $1,020.18 | $1,025.29 | $1,030.42 | $1,035.57 | $1,040.74 | $1,045.94 | $1,051.16 | $1,056.41 |
This table can be used directly to find the amounts that will result from investing $1000. It can also be used to find the results of investing other amounts.
EXAMPLES
1. $1000 is placed in a savings account that pays 4.5% annual interest compounded monthly. Find the amount in the account and the interest paid after 8 months.
2. Find the interest earned over a 1 year period if 1500 marks is invested in a savings account that pays 3% annual interest compounded monthly.
SOLUTIONS
1. Directly from the table, reading the appropriate row and column:
| Rate (%) | 2 | 2.5 | 3 | 3.5 | 4 | 4.5 | 5 | 5.5 |
| Month | ||||||||
| 6 | $1,010.04 | $1,012.57 | $1,015.09 | $1,017.63 | $1,020.17 | $1,022.71 | $1,025.26 | $1,027.82 |
| 7 | $1,011.73 | $1,014.67 | $1,017.63 | $1,020.60 | $1,023.57 | $1,026.55 | $1,029.53 | $1,032.53 |
| 8 | $1,013.41 | $1,016.79 | $1,020.18 | $1,023.57 | $1,026.98 | $1,030.40 | $1,033.82 | $1,037.26 |
| 9 | $1,015.10 | $1,018.91 | $1,022.73 | $1,026.56 | $1,030.40 | $1,034.26 | $1,038.13 | $1,042.01 |
The amount is $1030.40.
2. Again from the table:
| Rate (%) | 2 | 2.5 | 3 | 3.5 | 4 | 4.5 | 5 | 5.5 |
| Month | ||||||||
| 11 | $1,018.49 | $1,023.16 | $1,027.85 | $1,032.56 | $1,037.28 | $1,042.03 | $1,046.80 | $1,051.59 |
| 12 | $1,020.18 | $1,025.29 | $1,030.42 | $1,035.57 | $1,040.74 | $1,045.94 | $1,051.16 | $1,056.41 |
1000 marks will amount to 1030.42.
1500 marks will amount to (1500/1000)x 1030.42 = ....
Try these examples! Don't forget to use the values in the monthly repayment table below.
| 13% P.A. | 13.5% P.A. | |
| 1 | 96.5 | 97 |
| 2 | 86.4 | 87.5 |
| 3 | 73.2 | 74.4 |
| 4 | 68.2 | 69.5 |
Loan of 3,200 rupees at 13% P.A. for 3 years. What is the monthly payment on the loan?
(3200/1000) x 73.2%
Loan of 4,200 rupees at 13.5% P.A. for 4 years. What is the total you pay on the loan?
(4200/1000) x 69.5% x 48 months
Loan of 4,200 rupees at 13.5% P.A. for 4 years. What is the total you pay on the loan?
(4200/1000) x 69.5% x 48 months
Do you understand the monthly repayment table?
