SOLUTION: If $100 is invested at 4% compounded quarterly, what is the interest earned after: 3 years interest earned= 5 years interest earned=

Algebra.Com
Question 1035116: If $100 is invested at 4% compounded quarterly, what is the interest earned after:
3 years interest earned=
5 years interest earned=
Found 3 solutions by Edwin McCravy, addingup, MathTherapy:
Answer by Edwin McCravy(20054)   (Show Source): You can put this solution on YOUR website!
If $100 is invested at 4% compounded quarterly, what is the interest earned after:
3 years interest earned=
5 years interest earned=
First we find what the $100 will have grown to by using the
formula



where 
P = the beginning amount = 100
r = the percentage interest expressed as a decimal = 0.04
n = the number of times per year interest is accumulated = 4
t = the number of years that have passed since the money was invested = 3
in the first part of the problem and 5 in the second.
A = the amount the $P will have grown to after n years.

So substitute those in the formula and calculate A. 
Then subtract P from A to find out how must interest
was added over those 3 or 5 years.

Edwin
Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
Use the one Ijust gave you as an example.
Answer by MathTherapy(10551)   (Show Source): You can put this solution on YOUR website!

If $100 is invested at 4% compounded quarterly, what is the interest earned after:
3 years interest earned=
5 years interest earned=
 

RELATED QUESTIONS


If $100 is invested at 4% compounded quarterly, what is the interest earned after: 
3... (answered by Theo)

If $600 is invested at 8% compounded quarterly, what is the interest earned after: 
5... (answered by Edwin McCravy,addingup,MathTherapy)

If $600 is invested at 17% compounded quarterly, what is the interest earned after:

a)  (answered by ikleyn)

If $400 is invested at 3% compounded monthly, what is the
interest earned after:
4... (answered by addingup,Edwin McCravy,MathTherapy)

If $700 is invested at 7% compounded quarterly, what is the interest earned after: 
a) 2  (answered by addingup)

 If $700 is invested at 10% compounded yearly, what is the interest earned after:
6... (answered by addingup,MathTherapy)

If $700 is invested at 10% compounded yearly, what is the interest earned after: 
6... (answered by robertb)

What interest will be earned if $3500 is invested for 5 years at 8% compounded... (answered by elima)

if$450 is invested at 12% compouned
what is the amount after 8 years?how much interest... (answered by stanbon)