Question

please check my answer thanks

What would be the amount of compound interest on $ 8,000 invested for one year at 6 %, compounded quarterly ? (need to show all of your work )

ok this is what I got

$8,000 x 0.6 = $ 480
$ 480 / 4 = $120
$120 x 0.6 / 4 = $ 121.80
$8,241.80 x 0.6 /4 =$ 123 .63
$8,365 .43 x0.6 / 4 = 125.48
$ 8,491

please let me know if I am right thanks again

Answer 1

correct

Answer 2

You can do the calculations above in one step using the formula

Amount = Principal (1+i)^n , where i is the periodic interest rate, in this case per quarter year,
and n is the number of interest periods , in this case n=4

so Amount = 8000(1.015)^4
= 8490.91

I also noticed in your solutions that you used .6 for 6%, that should have been .06

I am sure you are not expected to do it the way you attempted it.
That would be totally impractical had the time been something like 10 years.