SOLUTION: How much interest is earned on $1200 at 8% p.a for 5 years, compounded every 3 months

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Question 1118630: How much interest is earned on $1200 at 8% p.a for 5 years, compounded every 3 months
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
How much interest is earned on $1200 at 8% p.a for 5 years, compounded every 3 months
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5 years = 20 compounding periods.
8%/year = 2% per period
--> interest = 1200*(1 + 0.02)^20 - 1200