SOLUTION: I need help with this question. Find the balance for $1,000 invested at a rate of 8% for four years if the interest is compunded quarterly.
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Question 447099: I need help with this question. Find the balance for $1,000 invested at a rate of 8% for four years if the interest is compunded quarterly. Answer by lwsshak3(11628) (Show Source):
You can put this solution on YOUR website! I need help with this question. Find the balance for $1,000 invested at a rate of 8% for four years if the interest is compunded quarterly
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Compound Interest Formula:
A=P(1+r)^n
P=Initial investment
r=interest rate/period
n=number of periods
A=Investment worth after n periods
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For given problem,
P=1000
r=.08/4=.02
n=8*4=32
A=1000(1+.02)^32
A=$1884.54
ans:
$1000 invested at an annual interest rate of 8% compounded quarterly would be worth $1884.54 after 8 years
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