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Posted by **Mike** on Thursday, April 14, 2011 at 10:45am.

Simple interest?

Compounded annually?

Compounded quarterly

Compounded daily

- Math -
**MathMate**, Thursday, April 14, 2011 at 11:10amJohn,George,Mike or Lucky,

This is the same type of question as your previous question:

http://www.jiskha.com/display.cgi?id=1302748623

Study the previous response carefully and you will get the answer for this one easily.

If you need further help, post.

- Math -
**Mike**, Thursday, April 14, 2011 at 2:33pmThis one is qt different..i need more help..Thanks!

- Math -
**MathMate**, Thursday, April 14, 2011 at 2:51pmFor simple interest, and compounded yearly, at the end of one year, the interest is the same, as there is only one period.

interest rate = 1.03

Balance = PRN = 1000*1.03*1 = $1030

Interest = balance - principal = 1030-1000=$30

Principal = P = $1000

Compound interest

Compounded annually:

balance = PR^{n}= 1000*1.03^1 = $1030

Interest = 1030-1000=$30

Compounded quarterly:

n = 12months/3months = 4

R = 1+0.03/4 = 1.0075

balance after 1 year

= PR^n

interest = PR^n-P

Compounded daily:

n=365

R=1+0.03/365

balance after 1 year

= PR^n

interest = PR^n-P

- Math -
**Mike**, Thursday, April 14, 2011 at 2:59pmThank you very much for your help!

- Math -
**Vanessa**, Friday, January 11, 2013 at 10:30amPR^n-P

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