P1 = Po(1=r)^n.
Po = $100.
r = 10%/100% = 0.10.
n = 1Comp./yr. * 1yr. = 1 Compounding
period.
P1 = ?.
P2 = Po(1+r)^n.
Po = $.100
r = (10%/2)/100% = 0.05.
n = 2Comp./yr. * 1yr. = 2 Compounding periods.
P2 = ?.
P3 = Po(1+r)^n.
r = (10%/4)/100% = 0.025.
n = 4Comp./yr. * 1yr. = 4 Compounding periods.
P3 = ?.
Please could you help me solve this
Suppose you have $100 in an interest bearing account earning 10% interest. How much would you have after the first year under the following scenarios? .
annual compounding (every 12 months)- semi-annual compounding (every 6 months
quarterly compounding (every 3 months)
2 answers
Correction: P1 = Po(1+r)^n.
1 answer