Ask Experts Questions for FREE Help !
Ask
    rainblo83's Avatar
    rainblo83 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 22, 2007, 05:41 PM
    Very confused
    I need help working out this question. Does anybody know the answer?

    To compound $100. Quarterly for 20 years at 8% we must use:
    a. 40 periods at 4%
    b. 5 periods at 12%
    c. 10 periods at 4%
    d. 80 periods at 2%
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Mar 22, 2007, 08:29 PM
    Time = 20 x 4 = 80 periods

    Interest Rate = 8%/4 = 2%

    Therefore, Answer is: d. 80 periods at 2%
    Carol White's Avatar
    Carol White Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Mar 24, 2007, 11:55 AM
    Quote Originally Posted by rainblo83
    I need help working out this question. Does anybody know the answer?

    To compound $100. quarterly for 20 years at 8% we must use:
    a. 40 periods at 4%
    b. 5 periods at 12%
    c. 10 periods at 4%
    d. 80 periods at 2%
    The answer is "D"

    20 years quarterly = 80
    8% also will be divided by the quarterly periods as well = 2%
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

I'm So Confused [ 6 Answers ]

Ok I have been fighting this confusing battle about if I'm pregnant or not for about 3 months now. If so, I would have been ever since about Nov.19,2006. I KNOW I pee a lot and I can't stand it, I have gained weight and my stomach has become a little noticeable. My breast hurt sometimes and I've...

Confused about everything [ 2 Answers ]

Im 14 and I'm confused lately. I have been beating on myself lately that I might be gay. I think it is mind games because I never had the thought at all, but I'm not sure. I am always shy around girls and I think I am more afraid to try and get a girlfriend or something because then I would have to...

Confused [ 15 Answers ]

Thanks for taking the time to read this. My Ex boyfriend and were together for 3 and a half years.. I broke up with him in the beginning of the summer because I was having a bad time in my life.. and I needed to learn how to be independent.. and to see if I really loved him. Well basically I...

I'm confused... need help [ 8 Answers ]

Hi Its my first time using this site I'm not sure how ecaxtly it works But I will give it a try OK here's my story, there was this girl that I was pretty good friends with... and some how I started to like her a lot... but she didn't feel the same... so she obviously rejected me and it was...

Confused! [ 6 Answers ]

I posted here that I want my ex back! I been taking lexapro and clonazepam for my depression and anxienty and let me tell you it really works! My exgirlfriend left me 2 months ago for some other guy that is not even paying attention to her and doenst want to see her or hang out with her. Last...

View more questions Search