I have been bothered by the interest problem a lot . How to canculate? Below is a typical example : Mr. Daniel deposits $ 10,000 in a savings certificate earning p percent annual interest compounded quarterly. What is the value of p? (1) During the term of the certificate , he earns $18more than he would if the interest were not compounded . (2) He withdraws all the money six months after depositing it . Please elaborate your answer and the way you get the analogy . Thanks in advance . |