Quote:
Originally Posted by solidsnoop29  Compund interest compunded quarterly?
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AT= a0(1+i)^t - 2 hours ago
- - 4 days left to answer.
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I dont get it. Is the present value is 8,000, i= 5.5% p.a. compounded quarterly for 2 years then will that mean that
present value is 8,000, i= 5.5 divded by 3 (since there are 3 quarters in a year, ...3 months is one quarter of a year).
And the time period will be 6 quarters, since there are 6 quarters in 2 years?
2 hours ago
ok so if i was to implement all this in the formula = at=a0 (1+i)^t
How would this work? |
Are you serious or joking?
To start, there are 4 quarters in a year.
What's the meaning of your "2 hours ago" ?
If you want help, please re-post your problem CLEARLY.
All I can do for you now is:
if rate is 12% annual compounded quarterly,
then effective rate is (1 + .12/4)^4 - 1 = 1.03^4 - 1 = .1255 (12.55%)