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Math

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I really need help with this problem I am not getting it at all anyhelp would be great thanks

What would be the amount of compound interest on $8,000 invested for one year at 6% compounded quarterly ?

  • Math -

    Interest= 8000(1+.06/4)4 - 8000

    http://math.about.com/library/weekly/aa042002a.htm

  • Math -

    1st quarter:
    $8,000 * 0.06 = $480.
    $480 / 4 = $120 Interest for 1st quarter

    2nd quarter:
    $8,000 + $120 = $8,120
    $8,120 * 0.06 = $487.20
    $487.20 / 4 = $121.80 Interest for 2nd quarter

    3rd quarter:
    $8,120 + $121.80 = $8,241.80

    I think you can finish the 3rd quarter and do the 4th quarter on your own.

    We'll be glad to check your answer.

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