Calculate how much more interest would have been earned if


An investment account of £120,000 attracts 3.6% compound interest per annum.

Q1: If the interest is compounded annually, calculate how much will be in the account after 5 years.

Q2: Calculate how much more interest would have been earned if the interest had been compounded six-monthly at a rate of 1.8% per period.

Q3: Calculate the true annual rate of compound interest if interest of 1.8% is added half-yearly.

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Macroeconomics: Calculate how much more interest would have been earned if
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