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compounded interest issue

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楼主
发表于 2007-12-10 13:18:00 | 只看该作者

compounded interest issue

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 .

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