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Business Math

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calculate the compound amount after 5 years for an investment of $7,700 at 6% interest compounded quarterly.

  • Business Math -

    P = Po(1+r)^n.

    Po = $7700.

    r = (6%/4)/100% = 0.015 = Quarterly % rate expressed as a decimal.

    n = 4Comp./yr. * 5yrs = 20 Compounding
    periods.

    Plug the above values into the given Eq and get:
    P = $10,370.78

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