P = Po(1+r)^n
Po = $8500
r = (12%/4)/100% = 0.03 = Quarterly %
rate expressed as a decimal.
n = 1yr * 4comp/yr. = 4 compounding
periods.
Plug the above values into the given Eq and sole for P.
the compound amount on an investment of $8,500 at 12% interest, compounded quarterly, for 1 year.
1 answer
1 answer