Question

Compound amount

accumulate 300,000 for eight years at 7% compounded quarterly. How much is the interest?

Answer 1

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

$$I=A-P$$

Given

$A=300,000$

$r=0.07$

$n=4$

$t=8$

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

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

$$I=300000-\dfrac{300000}{(1+\dfrac{0.07}{4})^{4(8)}}=127805.26$$