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Jun 1 2014 11:26am
I know the formula, but I am having a hard time putting the formula for finding compound interest to use.

Principal = $5000
Rate = 7%
Time = 6 yrs.

I have to find the interest after semiannually, quarterly, and monthly.

Can someone help me and also break down how it's done?
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Jun 1 2014 11:33am
http://math.ucsd.edu/~wgarner/math4c/textbook/chapter4/compoundinterest.htm

examples of daily, weekly, monthly, quarterly, annually in there
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Jun 1 2014 05:13pm
You have to figure out how much interest you have after each period? Or after the 6 years under each compounding criteria?
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Jun 1 2014 10:15pm
Do you still need this?
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Jun 2 2014 12:06am
semiannual n will be 12, i/y will be 7/2
quarterly n is 24 i/y is 7/4
monthly n is 72, /y 7/12

5000=pv
comp fv
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Jun 7 2014 01:28am
Quote (Dune1 @ Jun 2 2014 03:26am)
I know the formula, but I am having a hard time putting the formula for finding compound interest to use.

Principal = $5000
Rate = 7%
Time = 6 yrs.

I have to find the interest after semiannually, quarterly, and monthly.

Can someone help me and also break down how it's done?


Just divide to annual interest rate by the number of periods
aka 0.07/4 for quarterly, 0.07/12 for monthly...
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