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Determine the balance of $5,000 invested for 10 years at an interest rate of 8% compounded
quarterly (4 times per year)

 May 1, 2020
 #1
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The "formula" is

 

A  =  P  ( 1 + r/n) ^(y*n)

Where

A  = the amt we are looking for

P = the beginning amt

r = the interset rate expressed as a decimal

n = the number of compoundings per year

y = the number of years

 

So we have

 

A = 5000 ( 1 + .08/4)^(10*4) ≈ $11040.20

 

 

cool cool cool

 May 1, 2020

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