Compound Interest need help with amount

Business & Finance
Tutor: None Selected Time limit: 1 Day

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

Apr 30th, 2015

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

Apr 30th, 2015

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

Apr 30th, 2015

0.063/4 = 1.016

Apr 30th, 2015

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