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)
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.
1 answer
1 answer