SOLUTION: Peter deposits k450 000.00 with BSP which offers 4 1/2% per annum interest. Calculate the interest earned after 4 years if it is COMPOUNDED EVERY THREE MONTHS

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Question 1025660: Peter deposits k450 000.00 with BSP which offers 4 1/2% per annum interest. Calculate the interest earned after 4 years if it is COMPOUNDED EVERY THREE MONTHS
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
Again, use the formula A+=+P%281%2Br%2Fn%29%5E%28nt%29 to find the future value, or the amount, of the initial deposit. Compounded every three months means THE TERM OF INTEREST IS QUARTERLY, or n = 4.
Then subtract the initial deposit from the amount to get the interest accumulated.