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August 21, 2014

August 21, 2014

Posted by **matt** on Sunday, April 1, 2012 at 7:55pm.

- math -
**Henry**, Monday, April 2, 2012 at 10:09pmP = Po(1+r)^n.

r = (12%/4) / 100% = 0.03 = Quarterly %

rate expressed as a decimal.

n = 4comp./yr * 1yr = 4 Compounding periods.

a. P = 100(1.03)^4 = $112.55.

b. P = Po + Po*r*t.

r = APR expressed as a decimal.

t = 2 Years.

100 + 100*r*2 = 112.55.

100*r*2 = 112.55 - 100 = 12.55.

r = 12.55 / 200 = 0.06275 = 6.275%.

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