Question

what will an investment of 6000 Euro at 7% p.a compound interest amount to after 5 years if the interest is compounded:
a) annually b)quarterly c) monthly? what will an investment of 6000 Euro at 7% p.a compound interest amount to after 5 years if the interest is compounded:
a) annually b)quarterly c) monthly? @Mathematics

Answer 1

A = p(1 + r/n)^(n/t)

P = present value

R = rate

N = compounded how? ( annually = 1, quarterly = 4, monthly = 12, daily = 365

a) A =6000(1 + .07/1)^(1*5)

Answer 2

Just remember to move your decimal point two to the left when inserting the INTEREST RATE which is R

Answer 3

A = Final value

Answer 4

n/t ?

Answer 5

\[Amount = Principal \times( 1 + \frac{rate}{n})^{nt}\]

use this formula for calculating the value
when it is annually put n = 1
quaterly then put n= 4
when monthly put n= 12

Answer 6

my mistake exponent should be multiplied.....thanks for catching that amistre