Question

A man invests Ksh.24, 000 in an account which pays 16% interest p.a. the interest is compounded quarterly. Find the amount in the account after 1½ years.

Answer 1

A = P(1 + ^R/₁₀₀)ⁿ
   =24000(1 + ¹⁶/₁₀₀ × ¼)⁶
   =24000(1+0.04)⁶
   =Ksh. 30367.70