Macroeconomics help pls

Question

Western Pipelines pays $280 at the beginning of every quarter for using a tract of land. What should the company offer the property owner as a purchase price if interest is 5.3​% compounded monthly​?

The company should offer ​$

Answer 1

Compound interest is the interest earned at the end of a period and it is automatically invested to earn additional interest.. So, it is different from simple interest.

For monthly compound interest n=12

An=P(1 +rn)n

Let P be the principal.

r is the interest rate

n is the time period

A is the accumulated amount at the end of the converted period.