Principle (P) Investment of $1000 compounded QUARTERLY:
- P = 1000 (initial investment)
- r = 0.12 (annual interest rate)
- n = 4 (compounding quarterly)
- ( t ) = number of years (0, 1, 2, 3, 4, 5, 6)
Each year corresponds to 4 × t compounding periods. We’ll compute the amount for each year and update the bar chart to display these values instead of just the initial and final amounts.
In Plain English:
A lump sum investment of $1000 will more than double in 6 years at 12% compounded quarterly ($2036.00)