<PRE><B>Question 1100262</B>
annual interest rate = 20% / 100 = .2


number of compounding period per year is 4.


.2 / 4 = .05 interest rate per quarter.


16000 * 1.05 ^ 4 = 19448.1


general formula is f = p * (1 + r) ^ n


f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.


ij your problem the time period is quarters of a year.


the yearly interest rate is divided by 4 to get the quarterly interest rate.
the number of years is multiplied by 4 to get the number of quarters.


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