Question

How are mortgage payments calculated?

please help I do know the answer but I really not getting how this numbers coming out please help:
let say if I deposit 400 dollar in savings account hope's of earning interest. if the annual rates are 6% and I keep the money in my account for 5 years what would be the balance after 6 year period?
so the answer is 535.29. but how this coming out .
thank you an advance. ​

Answer 1

see details below for each year.

Explanation:

year 1: 400 + 400(.06) = $424

year 2: 424+ 424(.06) = $449.44

year 3: 449.44+ 449.44(.06) = $476.41

year 4: 476.41+476.41(.06) = $504.99

year 5: 504.99+504.99(.06)= $535.29