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Math Help - Compound interest w/ fraction percentages?

  1. #1
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    Compound interest w/ fraction percentages?

    I have no idea what formula to use for this problem - can anyone suggest help and how to compute the fractions? Any and all help is greatly appreciated!

    Find the future value of $4300 at 6% compounded quarterly for 5 years.

    I know I have to use the compound interest formula, but where/how do I plug in the numbers?

    Thanks,
    Ivy
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  2. #2
    Member u2_wa's Avatar
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    Quote Originally Posted by Ateives View Post
    I have no idea what formula to use for this problem - can anyone suggest help and how to compute the fractions? Any and all help is greatly appreciated!

    Find the future value of $4300 at 6% compounded quarterly for 5 years.

    I know I have to use the compound interest formula, but where/how do I plug in the numbers?

    Thanks,
    Ivy

    A=P(1+\frac{r}{k})^{kt}

    • P = principal amount
    • r = annual nominal interest rate
    • k = number of times the interest is compounded per year
    • t = number of years
    • A = amount after time t


    P=4300,r=0.0675,k=4,t=5.5
    A=4300(1+\frac{0.0675}{4})^{4.5*5}
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