- If [math]\sout{N}600[/math] is invested in an account that earns [math]8\%[/math] compounded annually, what will be the account balance after 3 years?
- Calculate the amount if [math]\sout{N} 100[/math] was invested at [math]4\%[/math] compounded quarterly after a period of 2 years
Solution
1. [math]\text{A}=\text{600}(1+r)^n[/math]
[math]\text{A} = \text{P}(1+\frac{\text{8}}{100})^3[/math]
Account balance after years = [math]\sout{N} 755.83[/math]
2. [math]\text{A} = \text{100}(1+\frac{\text{4}}{100})^2[/math]
Amount after a period of 2 years = [math]\sout{N}108.16[/math]
Now how do I deal with this. My challenge here now is that the value for A and P was not given.