Lily invests $4,000, at 6% interest, compounded quarterly for 5 years. Calculate the compound interest for her investment by using Table 11-1.
2 answers
What does Table 11-1 say??
The interest of 6% compounded quarterly is 6/4 = 1.5% each quarter.
There are 20 quarters in 5 years.
(1.015)20*4,000 = ? = final value of thd $4,000.
Interest earned is ?-4000 = ?
There are 20 quarters in 5 years.
(1.015)20*4,000 = ? = final value of thd $4,000.
Interest earned is ?-4000 = ?
3 answers