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Question
Use the appropriate compound interest formula to compute the balance in the following accounts after the stated period of time.
is invested for years with an of and quarterly compounding.
Solution
VerifiedAnswered 2 years ago
Answered 2 years ago
Step 1
1 of 3To get the accumulated value of an investment of for years at an interest rate of compounded quarterly, we will use this formula:
where is the accumulated balance after years, is the starting principal, is the annual percentage rate in decimal form, is the compounding periods per year, and is the time in years.
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