principl money= 500000 rate= 8.6 year= 5 than what is compound intrest and intrest will calculte qutarly

Question

hey...mooldhan= 500000  rate 8.6  year = 5  than calculate compound interest... and intrest will calculate qutarly

Answer 1

Recall

 

A = P (1+i/n)^nt  and A - P = interest earned

 

A = accumulated or future value

P = principal = $500,000

i = rate   = 8.6%

t = time  = 5 years

n = compounding period = 4 = quarterly

 

A = (500000) (1+0.086/4)^4•5

A = (500000) (1.53) = 765,134  rounded to whole dollars

 

Compound Interest earned = 765134 - 500000 =  $265,134