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Kamila [148]
3 years ago
10

redo question 18 above with the same amount of deposit and the same interest rate, but with the interest compounded quarterly. h

ow much money would you have at the end of the four years in this situation?
Mathematics
1 answer:
yanalaym [24]3 years ago
5 0
There are no given figures. I'll just show what the difference is. Let us assume the following
Principal = 10,000
interest rate = 12%
term = 4 years

Simple Interest = Principal * interest rate * term
S.I = 10,000 * 12% * 4 years
S.I = 4,800

Total value at the end of 4 yrs = 10,000 + 4,800 = 14,800

Compounded Interest. Compounded quarterly.
A = P(1 + r/n)^n*t
A = 10,000 (1 + 12%/4)^4*4
A = 10,000 (1.03)^16
A = 10,000 (1.60)
A = 16,000 value after 4 years.
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