Question

Use the compound interest formula to find the compound amount on a $12,000 investment at 5% compounded quarterly for 4 years.

Answer 1

Total = Principal * [1 + (rate/n)]^n*years
Where "n" is the compounding periods per year
Total = 12,000 * (1+(.05/4))^(4*4)
Total = 12,000 * (1.0125)^(16)
Total = 12,000 * 1.2198895477
Total = 14,638.67