Question

How to calculate this?

4 year term investment. The investment offers a rate of 2.25% per annum, compounded semi-annually.

Another investment offers a rate of 2.25% annum, per compounded quarterly.

Final investment offers a rate of 1.95% per annym, simple interest.

Answer 1

Let P be the principal invested. The amount at the end of four years will be for each scenario

1: P*(1+0.0225/2)^(4*2)

2: P*(1+0.0225/4)^(4*4)

3: P*(1.0195^4)