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
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=
