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chad's commission rate is 12%. He invests his commission from the sale of $9000 worth of merchandise at an interest rate of 8%, compounded quarterly. How much is Chad's investment worth after 6 months?

  • math -

    .12 * 9000 = 1080 invested

    interest rate per quarter = 8/4 = 2%
    two quarters is six months
    so 1.02 * 1.02 = 1.0404
    1.0404 * 1080 = $ 1123.63

  • math -

    commission = .12(9000) = 1080

    1080(1.02)^2
    = ...

    ( rate = .08/4 = .02 , number of quarters in 6 months = 2 )

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