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Which of the following expressions is correct in getting the balance of a single deposit of $1000 compounded quarterly at 5% annual interest rate after 6 years. Group of answer choices

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Final answer:

To calculate the balance of a single deposit compounded quarterly at a 5% annual interest rate after 6 years, you can use the formula A = P(1 + r/n)^nt. Plugging in the given values, the balance is approximately $1343.92.

Step-by-step explanation:

To calculate the balance of a single deposit compounded quarterly, we can use the formula:

A = P(1 + r/n)nt

A is the balance after time t

P is the principal amount (initial deposit)

r is the annual interest rate (decimal)

n is the number of compounding periods per year

t is the number of years

In this case, the values are:


P = $1000

r = 0.05 (5% as a decimal)

n = 4 (quarterly compounding)

t = 6 years

Plugging these values into the formula, we get:

A = $1000(1 + 0.05/4)4*6

Simplifying the exponents, we have:

A = $1000(1.0125)24

Using a calculator or spreadsheet, we find that A is approximately $1343.92.

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