intrest calculation

Question

if David invest $1000 in an account paying an annual percentage rate of 12% compunded quaterly, how much would he have in your account at the end of 1 year, 10 year and 100 year?

Answer 1

A = p( 1 + r/ 4 ) ^ 4y               A- value of investment after the gain

                                               r - interest rate.

                                               y - number of years.

 

A = 1000 ( ! + 12%/ 4 ) 4(1)=

 

    = 1125.51

 

A = 1000 ( 1 + 0.12/4) ^ 4(10)=

   = 1000 * ( 1.03 ^40)=3262.04

A = 1000 ( 1.03^ 400) = 136423718.20

Answer 2

S=P*(1+r/4)^4t, where t is the number of years, r is the annual interest rate (r=0.12 in your problem), P is the principal ($1000 in your problem).