Question 1035117: If $600 is invested at 8% compounded quarterly, what is the interest earned after:
5 years interest earned=
4 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 $600 is invested at 8% compounded quarterly, what is the interest earned after:
5 years interest earned=
4 years interest earned=
First we find what $600 will have grown to by using the
formula
where
P = the beginning amount = 600
r = the percentage interest expressed as a decimal = 0.08
n = the number of times per year interest is accumulated = 4
t = the number of years that have passed since the money was invested = 5
in the first part of the problem and 4 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 5 or 4 years.
Edwin
You can put this solution on YOUR website! 600(1+0.08/4)^nt
Here n stands for number of periods (4 because there are 4 quarters) and t for the number of years. Multiply and resolve the exponent, so for example, for 4 years it would be: 600(1+0.02)^16 Use your calculator.
You can put this solution on YOUR website!
If $600 is invested at 8% compounded quarterly, what is the interest earned after:
5 years interest earned=
4 years interest earned=
