If a single sum of $12,000 is invested at 8% per annum with interest compounded quarterly, what is the amount to which the principal will have grown by the end of year three? (approximately)
A、$15,117
B、$9,528
C、$15,219
D、$30,924
A、$15,117
B、$9,528
C、$15,219
D、$30,924
【参考答案及解析】
We need to calculate the effective rate of interest.8% per annum (nominal) is 2% per quarter. The effective annual rate of interest is [1.024 - 1]= 0.08243 = 8.243%.Now we can use S = X(1 + r)nS = 12,000 (1.08243)3 S = $15,218.81. The principal will have grown to approximately $15,219.
We need to calculate the effective rate of interest.8% per annum (nominal) is 2% per quarter. The effective annual rate of interest is [1.024 - 1]= 0.08243 = 8.243%.Now we can use S = X(1 + r)nS = 12,000 (1.08243)3 S = $15,218.81. The principal will have grown to approximately $15,219.