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July 25, 2014

July 25, 2014

Posted by **lily** on Wednesday, December 7, 2011 at 2:00pm.

- FINANCE -
**Henry**, Friday, December 9, 2011 at 5:14pmPt = Po(1+r)^n.

r = (8%/2) / 100% = 0.04 = Semi-annual

% rate expressed as a decimal.

n = 2 comp./yr * 4yrs = 8 Compounding

periods.

Pt = 2000(1.04)^8 = 2737.138101 after 4 yrs.

r = (8.28%/4) / 100% = 0.0207 = QPR

expressed as a decimal.

n = 4 comp./yr * 4 yrs.=16 Compounding periods.

Pt = 2737.138101(1.0207)^16 = $3798.98.

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