math please explian
posted by keleb .
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 :)

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.
Respond to this Question
Similar Questions

math
the total amount of interest on this loan of $6000 for 150 days is $210.50. what is the rate of interest on this loan? 
math
What would be the compounded interest on $8,000 invested for onr year AT 6%, compounded quarterly? 
math
please help how do you figure out the compound interest on $8,000 invested for one year at 6% compounded quarterly. rounded to the nearest dollar 
math
Please help I know to figure out simple interest but what is the best way to figure out compound interest example 8,000 invested for one year at 6 % compounded quarterly (with the answer rounded to the nearest dollar 
Math
What would be the amount of compound interest on $8,000 invested for one year at 6%, compounded quarterly? 
Math
Mr. Nielson wants to borrow $1,000 for 2 years. He is given the choice of i) simple interest at 12%, or ii) a loan at 10% compounded monthly. Which loan results in less interest due ? 
math
Loan #1 Year Amount owed 1 $3796 2 $3942 3 $4088 Loan # 2 Year Amount owed 1 $977.53 2 $1036.18 3 1098.35 For loan #1 is simple interest. Loan #2 is compound interest How much was each loan originally Determine the future value of … 
math
Loan #1 Year Amount owed 1 $3796 2 $3942 3 $4088 Loan # 2 Year Amount owed 1 $977.53 2 $1036.18 3 1098.35 For loan #1 is simple interest. Loan #2 is compound interest How much was each loan originally Determine the future value of … 
math
compounded what would be the amount of compound interest on $12,000 invested for one year at 6%, compounded quarterly? 
math
Belle had the choice of taking out a four year car loan at 8.5% simple interest or a Five year loan at 7.75% simple interest. If she borrows $15,000, how much interest would she pay for each loan?