Question

Anny invests $8,500, at 6% interest, compounded quarterly for 12 years?

Answer 1

P = Po(1+r)^n

Po = $8,500

r = (6/4)/100 = 0.015 = Quarterly % rate
expressed as a decimal.

n = 4comp./yr. * 12yrs. = 48 Compounding
periods.

Solve for P.

I = P-Po