Geeta S. answered • 04/24/13

UC Berkeley Graduate: Passionate and Patient Teacher!

f(t) = P(1 + r/n)nt where n is amount of periods within a year

P=$62,000; r=0.25; t=18; n=4 (for quarterly) or n=2 (for semi-annually)

f(18) = 62,000 * (1 + 0.25/4) ^ (4*18) where n=4 (quarterly)

f(18) = 62,000 * (1 + 0.25/2) ^ (2*18) where n=2 (semi-annually)