Question
Find how much interest $15,000 earns in 4 years in a certificate of deposit paying 8.5% interest compounded quarterly.
Answers
drwls
15,000*[1 + (.085/4)]^16 -15,000
= 20,999.28 - 15,000 = $5999.28
Without compounding, it would be
15,000*.085*4 = $5100.00
This is how much is EARNED and does not include the original $15,000
= 20,999.28 - 15,000 = $5999.28
Without compounding, it would be
15,000*.085*4 = $5100.00
This is how much is EARNED and does not include the original $15,000