about quarterly percentages

Question

I wanted to know how do you write it out if I have 100.000 at 4% quarterly, I know 1000.000X(1+0.04/4) which 0.04 is percentage. I need to write it out for all of them-annually-semi and monthly.

Answer 1

I assume that you are expressing an annual rate of 4% compounded annually, quarterly, semi annually, and monthly.

The yearly equation is the base: y = y₀(1 + i)^t where i is annual rate and t is years. If you want to compound for some subdivision of a year (like a quarter), you will use 1/4 of i and you will compound 4 times every year or

y = y₀(1 + i/4)^4t

monthly would use 12 instead of 4

I'll leave semiannually to you.