Asked by Casie

I really need help with this problem I am not getting it at all anyhelp would be great thanks

What would be the amount of compound interest on $8,000 invested for one year at 6% compounded quarterly ?
Answered by bobpursley
Interest= 8000(1+.06/4)<sup>4</sup> - 8000

http://math.about.com/library/weekly/aa042002a.htm
Answered by Ms. Sue
1st quarter:
$8,000 * 0.06 = $480.
$480 / 4 = $120 Interest for 1st quarter

2nd quarter:
$8,000 + $120 = $8,120
$8,120 * 0.06 = $487.20
$487.20 / 4 = $121.80 Interest for 2nd quarter

3rd quarter:
$8,120 + $121.80 = $8,241.80

I think you can finish the 3rd quarter and do the 4th quarter on your own.

We'll be glad to check your answer.

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