Question

John deposit 5,000 pesos in a bank paying 12% compounded quarterly. After 4 years, John decided to close her account. How much money would she be able to get from bank? ​

Answer 1

Compound interest

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

Given $P=5000, r=0.12, n=4, t=4$

$$A=5000(1+\dfrac{0.12}{4})^{4(4)}=8023.53$$

John would be able to get 8023.53 pesos from bank.