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Re: A certain account pays 1.5 percent compound interest every

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Gian wrote:
Zarrolou wrote:
5 years = 60 months, so his compound interest will be paid \frac{60}{3}=20 times in total.

I=initial amount, T = final amount.

I(1+0.015)^{20}=T or I=\frac{T}{(1+0.015)^{20}}.

E


But, here the interest is not paid annually but quarterly. So,shouldn't we divide the rate also by 20.



@zarrolou/experts

Could anyone throw some light on the above confusion.

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