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%=3100=0.03 y=8 w=4 q1=1+q/w=1+0.03/4=403400=1.0075  n=y⋅ w=8⋅ 4=32 x=a⋅ q1n=25000⋅ 1.007532≐31752.7806≐31752.781a=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 \doteq 31752.781

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