Options :
a.) P=1.005Po
b.) P=1.02Po
c.) P=Po(0.02/4)
d.) P=Po(4.02/4)
e.) P=Po(1+ 0.02/4)
Answer:
a.) P=1.005Po
d.) e.) P=Po(1+ 0.02/4)
Step-by-step explanation:
From the compound interest formula:
P = P0(1 + r/n)^t
Rate = 2% = 2/100 = 0.02
n = Number of compounding times per period, quarterly ; n = (12 /3) months
P = P0(1 + 0.02/4)^1
P = p0(1 + 0.02/4)
Simplifying further :
P = P0(1 + 0.005)
P = p0(1.005)
