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In order to purchase a piece of scientific equipment within the next 16 months, in time for a large project planned, the current profit, $241,488 from sample analyses conducted by your laboratory this month must be allocated to high interest investments. 

If this principal is invested at a rate of 6.8% compounded once a month, what is the value of this investment, to the nearest dollar, after 16 months?

 Jul 16, 2021
 #1
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If  the  6.8%   is  the monthly interest rate

 

241488  (  1 + .068)^16     =    $691888

 

 

If  the  6.8%  is the  yearly interest rate   (more probable)

 

24148 ( 1 +  .068 / 12)^16   = $264338

 

 

cool cool cool

 Jul 16, 2021

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