UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: jennlgreen Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35362  
Subject: EE/E series bond Date: 10/18/2001 9:21 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi All--

I have been searching the site all afternoon for an answer to my question--hopefully someone here can help.

I have a EE/E series bond which was bought in 10/1987 in the $50 denomination. This month it received its lastest accrural and has reached face value ($55.22 to be exact--according to my savings bond wizard program). It has a YTD of 5.74% and its final maturity is in 10/2017. My question involves how much it will be worth in 2017. I used the compounding interest equation:

Future Value = $25*(1+0.0574)^30

FV = $133.39

Does this equation take into account the interest added to the original amount invested every six months? For some reason, I thought you had to account for the biannual accrurals. Am I trying to make this too complicated? It just seems like with a YTD of 5.74% there would be more than $108.39 in interest in 30 years.

JLG
wondering how I ever passed math
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Kate Spade's Wild Ride
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement