Using the same calculation methods, we could compound every hour, every minute, and even every second. Interest can be compounded yearly, semiannually, quarterly, monthly, and daily. \nonumber \]Įvaluating the left side of the equation givesĪn interest rate of 7.91% is needed in order for $5000 invested now to accumulate to $8000 at the end of 6 years, with interest compounded quarterly.
