what is the compound amount and compound interest of $7.700 with a nominal rate of 6% for 5 years
P = Po(1+r)^n
Po = $7700
Compounded Quarterly?
r = (6%/4)/100% = 0.015 = Quarterly % rate expressed as a decimal.
n = 4 comp./yr. * 5yrs = 20 Compounding
periods.
Plug the above values into the given Eq
and get P = $10,370.78.
I = P-Po