Question

Calculate the compound interest on an investment of $18,000 at 8%, interest compounded quarterly, for 15 months.

Answer 1

P = $18,000
R = 8%
T = 15 months
n = 15/3 = 5

A = P(1+r/n)^n = 18000(1+0.08/5)^5 =$19486.8

CI = A - P = $19486.8 - $18000 = $1486.8


Hope it helps!

Answer 2

The equation says A=p(1+i/m)^mn
A=18000(1+0.08/4)^(4*15/12)
A=18,000×(1+0.08÷4)^(5)
A=19,873.45

Interest earned
19873.45-18000=1,873.45