The interest is said to be compounded quarterly when compound interest is paid four times a year, and the compounding period is three months.
After t years, the balance A, in an account with principal P and rate r (in decimal form) is given by the formula
A = P(1 + r/n)nt
In our case P = 2,800, r = 7% = 0.07, n = 4, and t = 1 year, so we have:
A = P(1 + r/n)nt
A = 2,800(1 + 0.07/4)(4)(1) ≈ 3,001.21
The balance after one year is 3,001.21
£765.31
Roughly 11,669.70
He should deposit 17017.82
It is 712.97
138645
£765.31
8 percent compounded quarterly is equivalent to approx 36% annually. At that rate, after 3 years the ending balance would be 1762.72 approx.
compounded annually--$43,219 compounded quarterly--$44,402 compounded monthly-- $44,677 compounded daily--$44,812
Roughly 11,669.70
He should deposit 17017.82
$5,052.22
It is 712.97
138645
12100
13310
$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.
$11,573.02 if you deposit at the beginning of the quarter or $11,444.27 if you deposit at the end of the quarter