Question

Compound amount

what is the compound amount and compound interest of 150,000 invested at 6% compounded quarterly for 27 months.

Answer 1

The compound amount and compound interest of 150,000 invested at 6% compounded quarterly for 27 months are:

$FV = 150,000×(1 + 0.06/4)^9 = 171,508.5.$

Compound interest is:

171,508.5 - 150,000 = 21,508.5.