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Original Question
Calculate the compound interest on N7400 in 4 years at 6% p.a. If interest is calculated every three months.?

Asked by Anonymous

Calculate the compound interest on 7400 in 4years at 6% p.a. if interest is calculated every three months
5 years ago

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Answered by henry2,
P = Po(1+r)^n.
Po = $7400
r = 0.06(1/4) = 0.015 = Quarterly % rate.
n = 4comp./yr * 4yrs = 16 compounding periods.

I = P-Po.
5 years ago

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