Sorry To Post This Here, I Need A Quick Answer

[dogbox]

How much will £3500 be worth after 60 months given a net return of 3%?

Sorry mods, please remove shortly.

[Euphorion]

How much will £3500 be worth after 60 months given a net return of 3%?

Sorry mods, please remove shortly.

[/quote

Edited October 26, 2005 by Euphorion

[theChuz]

How much will £3500 be worth after 60 months given a net return of 3%?

Sorry mods, please remove shortly.

umm, 3% pa compounded over 5 years?

If so i make it £4057.46

EDITED:

bah euphorian beat me to the calculator

Edited October 26, 2005 by theChuz

[FreeFall]

How much will £3500 be worth after 60 months given a net return of 3%?

Sorry mods, please remove shortly.

Or if you meant 3500 per month as the title says it will be 226,263

[dogbox]

Or if you meant 3500 per month as the title says it will be 226,263

i DID MEAN £3500 PER MONTH FOR 60 MONTHS

Are you sure the compound interest will only be a poxy £16000 - surely not?

[theChuz]

Or if you meant 3500 per month as the title says it will be 226,263

Yea you might need to clarrify that.

Is it 3500 per month + 3% compounded per month over 60 months (seems odd)?

Is it 3500 per month i.e 42,000 + 3% compounded over 5 years?

Is it 3500 per year + 3% compounded over 5 years

Is it not even compounded?

i DID MEAN £3500 PER MONTH FOR 60 MONTHS

Are you sure the compound interest will only be a poxy £16000 - surely not?

dont buy it/do it dogbox its not worth it

It cant be property related though - nuBTL dont use numbers to justify a position

[dogbox]

Yea you might need to clarrify that.

Is it 3500 per month + 3% compounded per month over 60 months (seems odd)?

Is it 3500 per month i.e 42,000 + 3% compounded over 5 years?

Is it 3500 per year + 3% compounded over 5 years

Is it not even compounded?

dont buy it/do it dogbox its not worth it

It cant be property related though - nuBTL dont use numbers to justify a position

Someone once posted something about the 'miracle of compounding'. I dont call a net gain of £16000 after 60 months a miracle. No wonder people dont save anymore.

[jpidding]

Or if you meant 3500 per month as the title says it will be 226,263

Agree if its £3500 saved every month with 3% PA compounded I make it £266,590. (A bit of rounding error in there).

3% PA is 1.00246627% monthly compounded.

[dogbox]

Agree if its £3500 saved every month with 3% PA compounded I make it £266,590. (A bit of rounding error in there).

3% PA is 1.00246627% monthly compounded.

Thanks JP, this sounds a little better. Hope its correct (approximately that is)

[jpidding]

Someone once posted something about the 'miracle of compounding'. I dont call a net gain of £16000 after 60 months a miracle. No wonder people dont save anymore.

Compounding only gets good when the net IR goes up a bit.

At 8% PA you double your money every 10 years. So after 30 years you have 8 times your money. Trouble is that real interest rates are close to zero at teh moment, so you get virtually nowhere.

eg 5% gross = 3% net (probably where you got your figure from). Inflation 2.5% so 0.5% net means you make 16% after 30 years in real terms!

Cr@p.

[dogbox]

Compounding only gets good when the net IR goes up a bit.

At 8% PA you double your money every 10 years. So after 30 years you have 8 times your money. Trouble is that real interest rates are close to zero at teh moment, so you get virtually nowhere.

eg 5% gross = 3% net (probably where you got your figure from). Inflation 2.5% so 0.5% net means you make 16% after 30 years in real terms!

Cr@p.

Very useful post, Ive never come across such info before, thanks.

Its difficult trying to build enough capital to retire on and I was wondering whether I ought to save a serious amount into cash once my mortgage ends in a few years. Given your replies, cash looks a non - starter.