If you had land cost $452.50 with an interest of 6.3% paid quarterly what would be the compound interest for 50 years and 150 years. Please show calculations

Use the formula A = P(1 + r/n)^nt

Where A = amount

r = rate

n = number of times

t = time

For 50 years

A = $452.50(1 + .063/4)^(4)(50)

A = $452.50(1 + 0.016)^200

A = $452.50(23.919)

A = $10,832.25

For 150 years, all values will stay the same except you would put in 150 instead of 50 in t.

A = $452.50(1 + .063/4)^(4)(150)

A = $452.50(1.016)^600

A = $452.50(13684.369)

A = $6192176.97

One question how did 1+ 0.063/4 become (1.016)?

0.063/4 = 1.016

Secure Information

Content will be erased after question is completed.

Enter the email address associated with your account, and we will email you a link to reset your password.

Forgot your password?

Sign Up