For people who can do math good?!!?

Question

Find the compound interest earned by the deposit.
4634 at 8% continuously for 4 years.
AND
Find the effective annual interest rate for the given nominal annual interest rate
16% compounded quarterly
HELP PLEASE AND SHOW ME HOW U DO THIS

Answer 1

The formula for continuously compounded interest is
A = P e^(rt) where A = final amount, P = principal (initial amount), r = interest rate as a decimal, and t = time in years. e is a mathematical constant.

For your equation, A = 4634 e^(0.08X4) = 4634e^0.32 = 6381.61

So the interest earned is 6381.61- 4634.00 = 1747.61


To find the effective rate, choose an arbitrary amount, say $100, that you can easily find 16% of. Then find the actual interest. The formula for quarterly compounding is

A = P(1 + r/n)^(nt) where all are as above and n = number of compoundings per year; here n = 4

A = 100(1 + 0.16/4)^(4X1) = 116.98

So you actually earned 16.98 in interest which would be 16.98% of 100 so 16.98 is the effective yield.

Answer 2

i had studied that 2 years back in 9th standard. can't remember completely.you have to use this formula for compound interest
C. interest=4634 { 1 - (8/100)}raise to the power 4

Never heard of effective A.I. rate. i have written whatever i knew

Answer 3

amount =P(1+r/100)^n
=4634*(1.08)^4
=6304.51
4634(1.02)^16 if theinterest is compounded quarterly

Answer 4

well I can't help much with the math but I can help with the English....... It's "do math WELL" - not "do math GOOD"