Monday

July 28, 2014

July 28, 2014

Posted by **Tina** on Saturday, January 21, 2012 at 7:16pm.

A - annually

B - quarterly

C - monthly

what is the amount after 4 years? How much interest is earned?

- Finance math -
**Henry**, Sunday, January 22, 2012 at 8:14pmA. Pt = Po*(1+r)^n.

r = 6%/100% = 0.06 = Annual % rate expressed as a decimal.

n = 1 comp./yr * 4 yrs = 4 compounding

periods.

Pt = 100*(1.06)^4=$126.25 After 4 yrs.

Int. = Pt - Po = 126.25 - 100 = $26.25.

B. Pt = Po*(1+r)^n.

r = (6%/4) / 100% = 0.015 = Quarterly

% rate expressed as a decimal.

n = 4 comp./yr. * 4yrs = 16 compounding

periods. Calculate Pt and Int.

C. Pt = Po*(1+r)^n.

r = (6%/12) / 100% = 0.005 = Monthly %

rate expressed as adecimal.

n = 12 comp./yr * 4yrs = 48compounding

periods. Calculate Pt and Int.

**Related Questions**

math 11 - Calculate the amount of interest earned in 10 years on $1000 invested ...

math - Compute the compound quarterly amount after 1 year for $100 invested at ...

algebra HELP ASAP - If $13,000 is deposited in a bank account paying 6% ...

Compound interest - Hello My teacher skipped over this and I have no clue how to...

Math - Serena wanst to borrow $15 000 an pay it back in 10 years. Interest rates...

Math - A person wants to establish an annuity for retirement purposes. He wants ...

Math - If 3000 dollars is invested in a bank account at an interest rate of 6 ...

Calculus Please help! - If 7000 dollars is invested in a bank account at an ...

financial - Determine the amount of money in a saving account at the end of five...

Math - Your Aunt will give your $1,ooo if you invest it for 10 years in an ...