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what will an investment of 6000 Euro at 7% p.a compound interest amount to after 5 years if the interest is compounded:

Aannually b)quarterly c) monthly? what will an investment of 6000 Euro at 7% p.a compound interest amount to after 5 years if the interest is compounded:
Aannually b)quarterly c) monthly?

Verified Answer :

S = P[1 + (r / m)]^(m t) 

S = ? 

P = 6000 euro 

r = 0.07 

m = 12 

t = 5 

S = 6000[1 + (0.07 / 12)]^(12 5) 

S = 6000(1.00583)^(60) 

S = 6000(1.4176...) 

S = 8505.75 euro

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You can now do the rest which is anually and quarterly.

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