SOLUTION: Raffles Bank pays compound interest of 4% per annum,calculated quarterly. If $2000 was deposited in the bank for a period of 46 years, calculate the interest earned in Raffles Bank
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Question 361757: Raffles Bank pays compound interest of 4% per annum,calculated quarterly. If $2000 was deposited in the bank for a period of 46 years, calculate the interest earned in Raffles Bank.
thanks for help! Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Raffles Bank pays compound interest of 4% per annum,calculated quarterly. If $2000 was deposited in the bank for a period of 46 years, calculate the interest earned in Raffles Bank.
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A(t) = P(1+(r/n))^(nt)
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A(46) = 2000(1+(0.04/4))^(4*46)
A(46) = $12478.51
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Interest earned was 12478.51-2000 = 10,478.51
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Cheers,
Stan H.
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