Question

What will an investment of 6000 Euro at 7% p.a compound interest amount to after 5 years if the interest is compounded:

a) annually b)quarterly c) monthly? what will an investment of 6000 Euro at 7% p.a compound interest amount to after 5 years if the interest is compounded:
a) annually b)quarterly c) monthly?

Answer 1

S = P[1 + (r / m)]^(m * t)

S = ?

P = 6000 euro

r = 0.07

m = 12

t = 5

S = 6000[1 + (0.07 / 12)]^(12 * 5)

S = 6000(1.00583)^(60)

S = 6000(1.4176...)

S = 8505.75 euro

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You can now do the rest which is anually and quarterly.