Suggested Answer
Answer: The compound interest is quaterly then answer is $266,022.2639 and when it is in continuously then answer is $275,579.4095Quarterly compounding is what?Compounding quarterly is the term used to describe the amount of interest that is earned on a quarterly basis on a savings account or investment where the interest is also reinvested. As most banks offer interest income on the deposits, which compounds quarterly, this information is useful in computing the fixed deposit income. It can also be used to figure out any revenue from money market instruments or other financial products that pay quarterly income.What Does Constant Compounding Mean?If compound interest is calculated and reinvested into the balance of an account across an essentially unlimited number of periods, continuous compounding is the mathematical limit that compound interest can reach. While this is not attainable in practice, the concept of continually compounded interest is crucial in finance. Given that most interest is compounded on a monthly, quarterly, or semiannual basis, this is an extreme example of compounding.a) A = P(1 + r/n)nt P = $25000r = 12% = 0.12t = 20 yearsn = 4A = 25000(1 + 0.12/4)(4)(20)A = $266,022.2639 (Answer)b) A = PertP = $25000r = 12% = 0.12t = 20 yearsA = 25000e(0.12)(20)A = $275,579.4095 (Answer)Learn more about compound interest at brainly.com/question/24924853#SPJ1
