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A principal of 8,270 dollars is placed in an account that earns interest at the rate of 8% and is compounded quarterly. Approximately how much interest is earned on the investment at the end of 7 years? Show your work.

 Feb 23, 2021
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The total amount after 7 years will be

     # periods = 7 x 4 = 28       interest per period in decimal form = .08/4 = .02

 

Future amount =  $ 8270   (  1 + .02)28         

                       When you calculate this amount, subtract the original  $ 8270 to find the interest earned ....

 Feb 23, 2021

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