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Compounded Quarterly

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$100 earns 4% compounded quarterly - what is this worth in 5 years?

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Solution Preview

For the question about compounding whether quarterly or semiannually, we need to adjust both the interest rate and the period as follows: -

Compounded quarterly

The interest rate must be divided by 4 ...

Solution Summary

This solution is comprised of a detailed explanation and calculation to find what the amount will worth if it earns 4% compounded quarterly.

$2.19
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Compounded Interest

1. Find the present value of $2000 to be received 2 years from now discounted at 3% semiannually.

2. How many years will it take to triple your money in an investment that pays 7% interest compounded quarterly?

3. What is the monthly payment on a $150,000, 30-year mortgage at a 6.5% interest rate?

4. If you borrow $2000 and pay back $2600 in 5 years, what annual interest rate are you paying?

5. If you invest $12,000 at an expected return of 4% compounded quarterly, what be the value of your investment in 6 years?

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