> Principal is 500,000 and the interest rate is 6% how much is the compound interest quarterly for 5 years?

Principal is 500,000 and the interest rate is 6% how much is the compound interest quarterly for 5 years?

Principal is 500,000 and the interest rate is 6% how much is the compound interest quarterly for 5 years?

Posted at： 2014-12-05　
quarterly rate: 0.06 / 4 = 0.015

n = 5 yrs * 4 qtrs per year = 20

FV = PV(1 + r)^n

FV = 500,000(1.015^20) = 673,427.50

subtract the original principal to get the interest: $173,427.50
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