Question

1,00$ for 4 years at 2.0% compounded quarterly how much money would it be at the end of a year

Answer 1

The equation for compounding is: $A=P(1+\frac{r}{n} )^{nt}$

Where...

A=the final amount

P=the starting amount

r=the interest rate (as a decimal)

n=the number of times compounded per year

t=time (in year)

So therefore $A=100(1+\frac{.02}{4} )^{4*1}$

A≅121.6