Another Math Question (URGENT)!?

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Another Math Question (URGENT)!?

Find the interest earned on an investment of $3000. The annual interest rate is 8% compounded quarterly for 3 years.

Please show equations, if possible

2007-02-27 18:48:22 · 2 answers · asked by Anonymous in Education & Reference ➔ Homework Help

2 answers

quarterly = 2% per quarter
so 12 times - multiply
3000 x 1.02 = A
A x 1.02 = B
B x 1.02 = C
C x1.02 = d = 1st year with interest compounded
note that it is more than 3000 x 1.08 ! DOH compounded

do this for two more years

2007-02-27 18:58:06 · answer #1 · answered by tomkat1528 5 · 0⤊ 0⤋

investment $ 3000
per year intrest will be ( $3000 * 8% ) $ 240
quarterly will be ( $ 240 / 4 ) = $60

3 years = ( 12 * 3)= 36 months
$ 240 * 36 = $ 8640

hope it will help

2007-02-27 19:03:45 · answer #2 · answered by Akmal Zaidi 4 · 0⤊ 1⤋