Thread: interest

Hello everyone,

My question is this and is very specific:

100000 euros deposited on 1 January in a bank at 8% annually.
What is the value at the end of each quarter of the year?

Is this correct?:

.

taking the value of to calculate the value of the first quarter.

But I would not know if

A greeting

Hint:
100000 * 1.02 * 1.02 * 1.02 * 1.02

(assumes 8% annual, compounded quarterly)

Sorry, you mean rather 0.02?

Originally Posted by Dogod11

Sorry, you mean rather 0.02?

NO, I don't; question is:
"What is the value at the end of each quarter of the year?"

Ok. but I honestly do not understand what the 1.02, could be better explained, then how would the calculation in the formula that put it?

Thanks

100000.00 * 1.02 = 102000.00 (end Q1)
102000.00 * 1.02 = 104040.00 (end Q2)
104040.00 * 1.02 = 106120.80 (end Q3)
106120.80 * 1.02 = 108243.216 (end Q4)

100000.00(1.02)^4 = 108243.216