$100 earns 4% compounded quarterly - what is this worth in 5 years?© BrainMass Inc. brainmass.com October 24, 2018, 8:41 pm ad1c9bdddf
For the question about compounding whether quarterly or semiannually, we need to adjust both the interest rate and the period as follows: -
The interest rate must be divided by 4 ...
This solution is comprised of a detailed explanation and calculation to find what the amount will worth if it earns 4% compounded quarterly.
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?View Full Posting Details