Answer:
228,710.84 frws
Explanation:
A trader banks 250000frws at 9%per year compound interest rate calculated every 4 months. find the amount in the bank at the start of the year?
The above question is asking us to find the Principal. The formula is given as:
P = A / (1 + r/n)^nt
A = Amount after time t = 250000
r = Interest rate = 9%
n = Compounding frequency = 4
t = time = 1 year
First, convert R as a percent to r as a decimal
r = R/100
r = 9/100
r = 0.09 per year,
Then, solve the equation for P
P = A / (1 + r/n)^nt
P = 250,000.00 / (1 + 0.09/4)^(4)(1)
P = 250,000.00 / (1 + 0.0225)^(4)
P = $228,710.84
The bank started with 228,710.84frws