# math

posted by on .

Please help I know to figure out simple interest but what is the best way to figure out compound interest example 8,000 invested for one year at 6 % compounded quarterly (with the answer rounded to the nearest dollar

• math - ,

For starters, if the 6% is compounded quarterly, that is 6/4 or 1.5 % each three month period. (Percent interest is generally given as if for a year)

That means that every three months you multiply what you have in the bank by 1.015.

In a year, you compound four times, so you multiply by 1.015 four times or

\$8,000 * 1.015*1.015*1.015*1.015
or of course
\$8,000*1.015^4
or
\$8,000 * 1.06136 (a little better than 6% simple)
or
\$8490.91 which is to the nearest dollar \$8491
The text passage contains a compound interest problem and provides a detailed solution to it.
single_question_with_answer
Given a text passage, determine:
    1. If it contains a mathematical question (including word problems or calculations)
    2. If an answer to that mathematical question is provided in the text

First, describe the content structure you found in 1-2 sentences.

Then provide your analysis in the following format:
TYPE: <one of the following values>
- NO_QUESTION
- SINGLE_QUESTION
- SINGLE_QUESTION_WITH_ANSWER
- MULTIPLE_QUESTIONS
- MULTIPLE_QUESTIONS_WITH_ANSWERS
system
# math

posted by on .

Please help I know to figure out simple interest but what is the best way to figure out compound interest example 8,000 invested for one year at 6 % compounded quarterly (with the answer rounded to the nearest dollar

• math - ,

For starters, if the 6% is compounded quarterly, that is 6/4 or 1.5 % each three month period. (Percent interest is generally given as if for a year)

That means that every three months you multiply what you have in the bank by 1.015.

In a year, you compound four times, so you multiply by 1.015 four times or

\$8,000 * 1.015*1.015*1.015*1.015
or of course
\$8,000*1.015^4
or
\$8,000 * 1.06136 (a little better than 6% simple)
or
\$8490.91 which is to the nearest dollar \$8491
user
The text passage contains a compound interest problem and provides a detailed solution to it.

TYPE: SINGLE_QUESTION_WITH_ANSWER