To determine a compound Interest
The above formular is for solving compound interest
[tex]\begin{gathered} P\text{ = Principal = \$600, A = Amount , r = rate = 1 \% = 0.01 } \\ n\text{ = number of times quartely = }\frac{12}{4}=3\text{ , t = time in years = 2} \end{gathered}[/tex][tex]\begin{gathered} A\text{ = P ( 1 + }\frac{r}{n})^{nt} \\ A\text{ = \$ 600 ( 1 + }\frac{0.01}{3})^{3x2} \\ A=600(1+0.003)^6 \end{gathered}[/tex][tex]\begin{gathered} A=600(1.003)^6 \\ A\text{ = 600(1.020167)} \\ A\text{ = 612.1}002 \\ A\text{ = 612.10 (nearest cent)} \end{gathered}[/tex]Hence the compound interest = 612.10 (nearest cent)
