You invest $300 in an account that has a annual interest rate of 6%, compounded quarterly for four years. What is the equivalent interest rate, and how many times will the money be compounded?
quarterly means every 3 month , so there are 4 quarterlies in one year . 4 multiplied by 4 years = 16. So there are 16 quarterlies in 4 years. Therefore, $300 will be compounded 16 times for four years.
