Question 177231
10.5% compounded quarterly is 10.5% / 4 each quarter = 2.625% each quarter.
to get the rate, you divide the % by 100% to get .02625 interest rate each quarter.
you will be multiplying by 1 + this, so you will be multiplying by 1.02625 each quarter.
number of years is 10
number of time periods is 4 * 10 = 40
so you are going to multiply $8,000 * (1.02625)^40 = $22,536.64769
in general, the rule is:
interest rate per period is annual interest rate divided by number of periods per year.
number of time periods is number of years times number of time periods per year.
looks like your problem is you rounded before getting to the end.
.105/4 = .02625
you just took .02
never round in the middle of a calculation.
only at the end.
the answer of $22,536.64769 rounds to $22,536.65