Posted by Tee on Thursday, June 27, 2013 at 10:22pm.
Compute the amount of compound interest earned in 1 year for an investment of $1,000,000 with a nominal interest rate of 8% compounded quarterly.

Business Math  Henry, Saturday, June 29, 2013 at 3:00pm
P = Po(1+r)^n.
Po = $1,000,000.
r = (8%/4)/100% = 0.02 = Quarterly % .rate expressed as a decimal.
n 4Comp./yr. * 8trs = 32 Compounding
periods.
Plug the above values into the given Eq and solve for P.
I = PPo.

Business Math  Henry, Saturday, June 29, 2013 at 3:05pm
CORRECTION: n = 4Comp./yr. * 1yr. = 4
Compounding periods.
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