Thursday

September 18, 2014

September 18, 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%.

**Answer this Question**

**Related Questions**

computer science - When $1000 is deposit at 5% simple interest, the amount grows...

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

math - An amount of $5000 is invested at an interest rate of 7% per year, ...

business math - . Compute the amount of compound interest earned in 1 year for ...

contemporary math - Compute the amount of compound interest earned in 1 year for...

math - Compute the amount of compound interest earned in 1 year for an ...

business math - compute the amount of compound interest earned in 1 year for an ...

Business Math - Compute the amount of compound interest earned in 1 year for an ...

math - Find the accumulated amount A, if the principal P is invested at an ...

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