Question

Compound amount

use the compound interest formula to calculate the compound amount on 300,000 invested at 8% interest compounded quarterly for 5 years.

Answer 1

$$A=P(1+\dfrac{r}{n})^{n(t)}$$

Given

$P=300000$

$r=0.08$

$n=4$

$t=5$

$$A=300000(1+\dfrac{0.08}{4})^{4(5)}$$

$$A=445784.22$$