Melody

Random260:

This is the formula. We are doing compound interest the formula is A= P(1+R)^n
A= Amount owning or earned at the end of the complete process
P= Principal
r= interest rate of period expressed in decimal
n= Number of compounding Periods

Also:
I= A-P
I= The compound interest owned over after certain amount of years
A= Amount of loan or investment after the same amount of years
P= Principal

This is question: A building society offered an interest rate or 7.25% p. on any investment over 3000 Bob deposited 3600 and recived 5944 after 7 years
So long as there is at least $3000 in the account, interest is paid on the whole lot.

1) How often was the interest compounded
Answer (I looked at it and dont know what I did wrong and how to do it) = Every 4 months

Random260:

Thanks will keep that in future refrence however, it is every 4 months
so when I do 600x1+(0.0725/4)^7x4 or 28 it gives me
:600 not 2944