Posted by **keleb** on Monday, January 7, 2008 at 7:58pm.

I know how to do simple interest on a loan but how would I figure compound interest on a loan $8,000 invested for one year at 6% compounded quarterly ? with rounded to the nearest dollar thanks in advance for explaining :)

- math please explian -
**Damon**, Monday, January 7, 2008 at 8:13pm
I knew it was coming :)

you are going to do 6% a year compounded quarterly.

that means you will do 6%/4 each time

that is 1.5% every three months.

that means every three months you will multiply whatever is in the bank by 1.015

You do this four times in a year so you multiply the original amount by

1.015 *1.015*1.015*1.015

or 1.015^4

which is

1.06136

\So multiply that by 8,000

=8490.91

to the nearest dollar that is

8,491

so you made 491 in interest that year.

## Answer this Question

## Related Questions

- math - Please help I know to figure out simple interest but what is the best way...
- math - please help how do you figure out the compound interest on $8,000 ...
- Math - Mr. Nielson wants to borrow $1,000 for 2 years. He is given the choice of...
- math - Belle had the choice of taking out a four year car loan at 8.5% simple ...
- math - Loan #1 Year Amount owed 1 $3796 2 $3942 3 $4088 Loan # 2 Year Amount ...
- math - the total amount of interest on this loan of $6000 for 150 days is $210....
- math - Loan #1 Year Amount owed 1 $3796 2 $3942 3 $4088 Loan # 2 Year Amount ...
- math - what formula would i use to solve for this: Loan Interest A developer ...
- math - What would be the compounded interest on $8,000 invested for onr year AT ...
- Math - What would be the amount of compound interest on $8,000 invested for one...

More Related Questions