Question
$3,800 principal earning 2%, compounded quarterly, after 7 years
Answers
Henry
Pt = Po(r + 1)^n.
r = APR / 4 = 2 / 4 = 0.5% = 0.005 =
Quarterly int. rate expressed as a decimal.
n=7yrs * 4 comp/yr = 28 comp. periods.
Pt = 3800(1.005)^28,
Pt = 3800 * 1.14987261 = $4369.52 = principal after 7 yrs.
Int. = Pt - Po = 4369.52 - 3800 = $569.52
r = APR / 4 = 2 / 4 = 0.5% = 0.005 =
Quarterly int. rate expressed as a decimal.
n=7yrs * 4 comp/yr = 28 comp. periods.
Pt = 3800(1.005)^28,
Pt = 3800 * 1.14987261 = $4369.52 = principal after 7 yrs.
Int. = Pt - Po = 4369.52 - 3800 = $569.52
karla
4,369.52