Question

What is the balance if principal is $4,800, for 5 years at yearly rate of 6%, and the compounded interest is 4 times a year?

Answer 1

5 years = 20 periods
.06/4 = .015
1.015^20 = 1.36855007
times 4,800 = $6464.90

Answer 2

Thank you. For the same question what is the answer if the n=∞ [compounded continuously]?