Find total number of interest periods quarterly for 4 years

Explanation:

To calculate compounding interests, you must know the number of times the interest is going to be compounded.

You must know that quarterly means four in a year.

The number of interest periods,n, is equal to the number of interest periods in one year multiplied by the number of years.

When the interests are calculated once in a year, the number of interest periods for 1 year is: 1 year × 1 period / year = 1 period.

When the interest are calculated four times  in a year, and the number of years is 3, then the number of of interest periods is: 3 years × 4 period / year = 12 periods.

This table,with some examples, may help you more:

Compounding      periods per year      # years      # interest periods

Annual                             1                           1              1 × 1 = 1

Quarterly                         4                          1              4 × 1 = 4

Semiannually                  2                          1              2 × 1 = 2

For this problem:

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step-by-step explanation:

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