Question
If I had a 4,0000 deposit at an apr of 5.6% with quarterly compounding, how much would I have after four years?
Answers
Henry
P = Po(1+r)^n.
r = (5.6%/4) / 100% = 0.014 = Quarterly
% rate expressed as a decimal.
n = 4comp/yr. * 4yrs = 16 Compounding
periods.
Plug the above values into the given Eq
and solve for P.
r = (5.6%/4) / 100% = 0.014 = Quarterly
% rate expressed as a decimal.
n = 4comp/yr. * 4yrs = 16 Compounding
periods.
Plug the above values into the given Eq
and solve for P.