business maths

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an inverstment of 35000 is made for 5 years at 6% interest rate.find its compound interest and compound amount if it is compounded quartely.

  • business maths -

    Compound interest
    =P[(1+r)^n-1]
    where
    P=present value
    r=rate of interest per period = 0.06/4 = 0.015
    n=number of periods = 5*4 = 20

    Compound interest
    =35000(1.015^20-1)
    =?

  • business maths -

    Compound Interest:
    P x (1+r/100)^n
    (where
    P= Principal (present value)
    r= Rate of interest
    n= number of periods {20[4(quarterly)*5]}
    )

    Working:
    35000 X (1+6/100)^20
    =112249.7415
    ≈112249.74

    ANS: $112249.74

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