What Is The Formula Used To Find Compound Interest Earned On Principal Of $1200 Compounded Triannually At 8.2% For 3 Years?


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amber Jhon answered
The formula which is used for determining the interest is as follows:

Present value = Cash payment in period One/(1 + interest)1 + Cash payment in period One/(1 + interest)2 +...

If 8.2% is the coupon rate then for tri-annual payments 0.082/3 x 1200 is the payment of every period. Total payments in 3 years will be 9 payments.

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