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20 June, 12:37

After 6 years what is the total anount of a compound intrest investment of $35,000 at 4% intrest compound quarterly

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  1. 20 June, 13:22
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    The pertinent formula is A = P (1 + r/n) ^ (nt), where

    P is the original amount of money (Principal),

    A is the compound amount,

    r is the annual interest rate, expressed as a decimal fraction,

    n is the # of compounding periods per year, and

    t is the # of years.

    Here, A = $35000 (1 + 0.04/4) ^ (4*6)

    = $35000 (1.01) ^24

    = $35000 (1.2697) = $44440.71
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