math please explian

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I know how to do simple interest on a loan but how would I figure compound interest on a loan $8,000 invested for one year at 6% compounded quarterly ? with rounded to the nearest dollar thanks in advance for explaining :)

  • math please explian -

    I knew it was coming :)

    you are going to do 6% a year compounded quarterly.

    that means you will do 6%/4 each time
    that is 1.5% every three months.

    that means every three months you will multiply whatever is in the bank by 1.015

    You do this four times in a year so you multiply the original amount by
    1.015 *1.015*1.015*1.015
    or 1.015^4
    which is
    1.06136

    \So multiply that by 8,000
    =8490.91
    to the nearest dollar that is
    8,491
    so you made 491 in interest that year.

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