You think that’s how compounding interest works?
before what you’re talking about isn’t and doesn’t apply to how interests work.
So what you are saying is that before you’ll take 1,000+12% and it’ll show 120 as the interest, and when you press equal it’ll then give you your total of 1,120 and if you press equal for a 2nd time (as in the 2nd year) it’ll then give you a value of 1,240. Which is wrong when it comes to interest, all you doing there is adding another 12% to the initial cost of 1,000 which would give you another 120 and every time you press = it’ll just add 120 in the span of 40x.
The way the calculator is NOW is how it should be when compounding interest which is taking 1,000+12%= 1,120 for the first year and what happens for the 2nd year is that you will then receive 12% to 1,120 and not 1,000 so the new total for the 2nd year would be 1,254.40 and not 1,240. So what you thought you was doing this entire time has been incorrect as far as interest goes.
So the 3rd year would be 1,404.93 (404.93 in interest) and not 1,360 (360 in interest) which is what you initially said is what you’ll do.
After every year you have to apply the 12% to the new balance, NOT add the initial 12% of the first year. If that’s the case instead of just pressing = 40 times you could had just took your value to 120 and times that by 40 and gotten your “answer” quicker. Which still would had been incorrect by the end of your term example.
Correct answer to your term example is that you will end up receiving $92,050.97 in interest at 12% yearly for 40yrs from $1,000.
NOT $120x40= $4,800. Huge difference.
So if that’s what you’re into figuring out then iOS18 calculator is NOW perfect for you since you are now doing proper math with a proper approach when it comes to interest compounding. Don’t believe me? You can use any online interest calculator and put in your exact values for the time mentioned, you’d see.