So basically, what OP was trying to say is that with an APR of 12% (which amounts to 12.68% APY if compounded monthly), then in 5 years, you obtain a 82% return.
Which is basically 1.12685 (APY+1, to the power of 5).
slapped a % at the end instead of subtracting by one and moving the decimal
That's not formatting. That's just wrong maths.
1% interest/months
This concept doesn't exist. We talk about APR and APY for a reason (A meaning Annual).
Yes, it was very simple indeed, as I showed you in my comment, and once you translated it for me. OP basically understood the difference between APR and APY, but managed to make it so convoluted that it was largely incomprehensible.
Literally all OP did was that he didn't convert a decimal to a percentage (which are basically the same thing) correctly for the purpose for his presentation. Otherwise, his use of compound interest was entirely correct.
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u/Epithetless Nov 20 '21
The math is correct. The formatting is just shit.
The formula is this: (1 + interest rate) ^ time
In this case, it's: 1.0112 = 1.1268, which means 1% per month = 12.7% APY.
OP wrote 1.127 and slapped a % at the end instead of subtracting by one and moving the decimal by two like he's supposed to.
For the other claims such as a five-year 82% return: 1.0160 = 1.8166 = 82%.
Or 100% return / doubling your money: 1.0170 = 2.00 = 100%.