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 You place $1,500 in a savings account earning 3% interest compounded annually. How much will you have at the end of four years? How much wou

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You place $1,500 in a savings account earning 3% interest compounded annually. How much will you have at the end of four years? How much would you have at the end of four years if interest is compounded semiannually?

 Mar 18, 2015

Best Answer 

 #2
avatar+128595 
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The semi-annual answer given by Anonymous is correct

For the annual compounding, we have

1500(1.03)^4 = $ 1688.26

 

  

 Mar 18, 2015

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 #1
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Compounded annually: $1680

Semi-annually $1689.74

A=P(1+rt)

 Mar 18, 2015
 #2
avatar+128595 
+5
Best Answer

The semi-annual answer given by Anonymous is correct

For the annual compounding, we have

1500(1.03)^4 = $ 1688.26

 

  

CPhill Mar 18, 2015

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