math

what is the compound amount and compound interest of $7.700 with a nominal rate of 6% for 5 years

  1. 👍 0
  2. 👎 0
  3. 👁 150
  1. 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

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    Money invested in compound interest amount to rs 27783 in 3 years and rs 26460 in 2 years what is the rate percent of interest ?

  2. Finance

    Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the

  3. Math

    The difference between compound interest and simple interest on a certain principal for two years at 20% rate of interest is Rs. 25. What is the Principal amount ? (Answer with theory)

  4. Math

    Find total amount in compound interest account. $9000 IS compounded semiannually at a rate of 11% for 20 years

  1. Social studies

    How die a compound interest rate differ from a simple interest rate? Compound interest rates pay more interest over time Compound interest rates are calculated only once a year Compound interest rates ideally lower than simple

  2. Social Studies

    I was wondering if I could check my answers with someone. I'm a bit confused with interest. I put stars next to the answers I chose. Thank you. An interest rate is a special type of (1 point) loan. **price. bank. service. 2. How

  3. social studies

    1)An interest rate is a special type of? a. loan b. price c. bank d. service 2) How does a compound interest rate differ from a simple interest rate? a. Compound interest rates pay more interest over time b. Compound interest

  4. SS

    Rohan has 100 dollars that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate and the other has a 4.8% compound interest rate. Bank B also offers two types of savings

  1. Math/Compound Interest

    1. Use the compound interest table to find the compound amount earned on a $5,900 deposit for 10 years at 10% compounded semiannually. _____________________________________ A. 9,610.45 b. 15,654.47 c. 3,710.45 d. 12,375.66 2.

  2. Math Personal Finance

    Assume we invest $2000 for one year in a savings account that pays an APR (Annual Percentage Rate) of 10% compounded quarterly. Calculate the interest and compound it by hand each quarter rather than using the compound interest

  3. math

    Compute the compound quarterly amount after 1 year for $100 invested at 12% interest compounded quarterly. What simple interest rate will yield the same amount in 2 years?

  4. maths

    1. Find the amount and the compound interest on rs.12800 for 1 year at 15/2%p.a. Componded semi-annually. 2.find the amount and the compound interest on rs.24000 for 6 months if the interest is payable quarterly at the rate of 20

You can view more similar questions or ask a new question.