A stupid question maybe regarding interest and compound interest.

[Dean Earls]

Hey guys,

I haven't been on here in a long time so apologize if I post this in the wrong place.  Maybe silly question with the answer being fairly obvious i just wanted to confirm with people who are a bit more adverse.  Math is not my strong suit but considering ive not done too bad in business thus far, but now starting a family im researching smarter investments and saving plans etc, and want to know as much as possible about interest, etc.

My questions is this if you have your money spread out in different savings accounts or investment funds, does the interest and compound interest add up the same as it would if it was all combined. 

For example lets take $100k and stick into one account that earns %15 interest this is easy to calculate.

but what if we took that same $100k and spread it out into multiple accounts with various interest rates .

even if the various interest rates total 15% between them are you losing out because the combined total is less in each account, or will the number end up being the same because ultimately is the same just spread into other accounts , does this make sense?

Sorry and thanks in advance.

PS the forums are not useable in Chrome on a mac.

[J Zev J.]

@Dean Earls - I always like running the numbers to see what works.

$100K at 15% = $15,000

___________________

$50K at 8% = $4,000

$50K at 7% = $3,500

Total interest = $7,500

____________________

$50K at 15% = $7,500

$50K at 15% = $7,500

Total interest = $15,000

Please let me know if this helps.