Interest= 8000(1+.06/4)4 - 8000
http://math.about.com/library/weekly/aa042002a.htm
I really need help with this problem I am not getting it at all anyhelp would be great thanks
What would be the amount of compound interest on $8,000 invested for one year at 6% compounded quarterly ?
2 answers
1st quarter:
$8,000 * 0.06 = $480.
$480 / 4 = $120 Interest for 1st quarter
2nd quarter:
$8,000 + $120 = $8,120
$8,120 * 0.06 = $487.20
$487.20 / 4 = $121.80 Interest for 2nd quarter
3rd quarter:
$8,120 + $121.80 = $8,241.80
I think you can finish the 3rd quarter and do the 4th quarter on your own.
We'll be glad to check your answer.
$8,000 * 0.06 = $480.
$480 / 4 = $120 Interest for 1st quarter
2nd quarter:
$8,000 + $120 = $8,120
$8,120 * 0.06 = $487.20
$487.20 / 4 = $121.80 Interest for 2nd quarter
3rd quarter:
$8,120 + $121.80 = $8,241.80
I think you can finish the 3rd quarter and do the 4th quarter on your own.
We'll be glad to check your answer.
1 answer