V = Vo(1+r)^n.
r = 0.01/4 = 0.0025 = Quarterly % rate expressed as a decimal.
n = 4 Compounding period.
V = (3000(1.0025)^4 =
Int. = V - Vo.
Margaret Hillman invested $3,000 at 1%
compounded quarterly for one year. Find the future value and the interest earned for the year.
1 answer
2 answers