Asked by Tee
calculate the compound amount after 5 years for an investment of $7,700 at 6% interest compounded quarterly.
Answers
Answered by
Henry
P = Po(1+r)^n.
Po = $7700.
r = (6%/4)/100% = 0.015 = Quarterly % rate expressed as a decimal.
n = 4Comp./yr. * 5yrs = 20 Compounding
periods.
Plug the above values into the given Eq and get:
P = $10,370.78
Po = $7700.
r = (6%/4)/100% = 0.015 = Quarterly % rate expressed as a decimal.
n = 4Comp./yr. * 5yrs = 20 Compounding
periods.
Plug the above values into the given Eq and get:
P = $10,370.78