Compound interest 3

After 8 years, what is the total amount of a compound interest investment of $25,000 at 3% interest, compounded quarterly? (interest is now dream - in the year 2019)

Result

x =  31752.781

Solution:

$a = 25000 \ \\ q = 3 \% = \dfrac{ 3 }{ 100 } = 0.03 \ \\ y = 8 \ \\ w = 4 \ \\ q_{ 1 } = 1 + q/w = 1 + 0.03/4 = \dfrac{ 403 }{ 400 } = 1.0075 \ \\ \ \\ n = y \cdot \ w = 8 \cdot \ 4 = 32 \ \\ x = a \cdot \ q_{ 1 }^{ n } = 25000 \cdot \ 1.0075^{ 32 } \doteq 31752.7806 = 31752.781$

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