Monday

March 30, 2015

March 30, 2015

Posted by **Benjie** on Wednesday, June 18, 2008 at 3:29pm.

- MATH -
**tchrwill**, Wednesday, June 18, 2008 at 3:46pmThe compound interest derives from

I = P[(1 + i)^n - 1] where P = the amount invested, i = the decimal equivalant of the periodic interest rate and n = the number of interest bearing periods.

Therefore, P = 8000, i = 6/100(12) = .015 and n = 4.

I = 8000[(1 + 6/100(4))^4 - 1]

I = 8000[1.015^4 - 1]

I = 8000[1.06136 - 1] = $490.91 = $491

**Answer this Question**

**Related Questions**

MATH - What wold be the amount of coumpound interest on $8,000 invested for one ...

Math - What would be the amount of compound interest on $8,000 invested for one ...

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 %6,000 invested for 2 ...

math - compounded- what would be the amount of compound interest on $12,000 ...

consumer math - Jim opened an account with $400. The account pays three percent...

math - Find the accumulated amount A if the principal P = $3,000 is invested at ...

math please explian - I know how to do simple interest on a loan but how would I...

math - please help how do you figure out the compound interest on $8,000 ...

Math - How much money, invested at an interest rate of r % per year ...