calculate compound interest (quarterly )earned in a year for $1000.00 with a nominal rate of 8%...(APY) ? THANKS
P = Po(1+r)^n
PO = $1,000
r = (8%/4)/100% = 0.02
n = 4comp./yr. * 1yr. = 4 Compounding
periods.
Plug the above values into the given Eq and solve for P.
I = P-Po