investment appraisal

The interest is 8/4 = 2% every 3 months. Three years is 12 quarters. So it will have grown to 12,000 x 1.02^12

Hi can anyone help me to do this sum pls if a single sum of $12000 is invested at 8% per annum with interest compounded quarterly, what is the amount to which the principal will have grown by the end of the year 3. thanks

If you ask in the Ask the Tutor Forum, then it is me who will answer (not 'anyone' !!!) :-) And why on earth have you asked exactly the same question as the first one in this thread - which I have already answered above ???!!!!!! If interest is quarterly, then the interest is 2% each quarter. So after 12 quarters (3 years x 4 quarters) it will have grown to 12000 x (1.02^12). (I do suggest that you watch our free lectures - they are a complete course covering everything you need to be able to pass F2 well.)

why do we follow the (1+Annual rate)^(1/no. of periods) - 1 formula over here?

But we don't do as you have written. We do it as explained in my previous reply.