Find the new principal if $3000 is borrowed at 8% compound interest for 4 years, and the
interest is compounded monthly
So by how many fractions do i increase it by and what is the starting fraction?? Im doing a table and in the first is time and im supposed to write end of_____ yr(s) also is there a quicker and accurate way of working it out, doing a table of monthly compound interest for 4 years will take me ages! :(
interest is compounded monthly
So by how many fractions do i increase it by and what is the starting fraction?? Im doing a table and in the first is time and im supposed to write end of_____ yr(s) also is there a quicker and accurate way of working it out, doing a table of monthly compound interest for 4 years will take me ages! :(
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Its a nominal interest rate so use the formula
Let m = the conversion period
i(m) = interest rate
Then
(1+ i(m)/m)^(time*m)
For this particular example,
3000(1+ [.08/12])^(4*12)
= 4127
Hope this helps
Let m = the conversion period
i(m) = interest rate
Then
(1+ i(m)/m)^(time*m)
For this particular example,
3000(1+ [.08/12])^(4*12)
= 4127
Hope this helps