an inverstment of 35000 is made for 5 years at 6% interest rate.find its compound interest and compound amount if it is compounded quartely.

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1. Compound interest
=P[(1+r)^n-1]
where
P=present value
r=rate of interest per period = 0.06/4 = 0.015
n=number of periods = 5*4 = 20

Compound interest
=35000(1.015^20-1)
=?

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2. Compound Interest:
P x (1+r/100)^n
(where
P= Principal (present value)
r= Rate of interest
n= number of periods {20[4(quarterly)*5]}
)

Working:
35000 X (1+6/100)^20
=112249.7415
≈112249.74

ANS: \$112249.74

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3. 14,ooo at 4% for 9 months rounded to the nearest cent

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