I can't do the maths.

So .....if I save £250 a month for twelve months and receive interest of 3%.
What total should I receive?
How do you work it out?

 

Is the interest paid monthly?

 

On maturity.

 

OK so I guess jiffy's maths is right, although I have a sneaky feeling its not that simple.

For starters the final payment is only there for one month, whereas the first payment is there for 12 months

 

This is my thinking.

 

Its like compound interest in reverse

 

Don't you get 3% on £250 on the first month and then 3% on £500 in the second month and so on?

 

That's why I asked if it was monthly interest.

 

Look for a compound interest calculator on the internet . It will explain and do the calculation for you . Think it will be 3% a year though , not each month.

 

£250 × 12, plus £250 x 11, etc., all the way down to plus £250 x 1, then divide the total by 12 to get the average amount invested over the year and multiply by 3%. It wont be strictly accurate because of different numbers of days in months, but close enough.

 

Seems like rocket science to me..........

 

Give me the rocket science any day

 

It's only arithmetic, not rocket science.



It will increase if interest is calculated and paid monthly, so interest is then paid on interest, increasing it to £49.19.

 

No its just the financial world tieing up the ordinary person in knots.

They gamble on us not understanding how they do things.

 

Sod the calculations.

Where are you getting 3%?

That's what I'd like to know.