Respuesta :
CI=367.248 is the compound interest for an investment of $6000.00 at 2% interest for 3years.
P=6000, R=2
A=P[tex](1+\frac{R}{100} )^{3}[/tex]
A=6000[tex](1+\frac{2}{100} )^{3}[/tex]
A=[tex]6000(\frac{102}{100} )^{3}[/tex]
A=6000×1.061208
A=6367.248
CI=A-P
CI=6367.248-6000
CI=367.248
What exactly is quarterly compounding?
- Compounding quarterly refers to the amount of interest earned quarterly on an account or investment where the interest earned is also reinvested.
- Furthermore, it is useful in calculating fixed deposit income because most banks offer interest income on deposits that compound quarterly.
Annual Interest Rate Divided
- Once you have that data, divide the annual interest rate by four to get the quarterly interest rate. Divide 0.0404 by 4 to get a quarterly interest rate of 0.0101 if the annual interest rate is 4.04 percent. Increase the quarterly interest rate by one.
Compounded Quarterly Case
- A (Future Value of Investment) must be computed. P (initial investment value) = $10,000. ROR (rate of return) = (Current Investment Value - Original Investment Value)/Original Investment Value * 100read more) = 2% compounded quarterly.
To learn more about quarterly compounding refer to
https://brainly.com/question/25534066
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