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Part 1Use the periodic compound interest formula to solve.Suppose that$5000 is invested at3.5% compoundedquarterly. Find the total amount of this investment after8 years.The amount after8 years will be $enter your response here

1 Answer

3 votes

Given:

P= 5000

r= 3.5%

n=4 and t= 8

The formula as follows:


\begin{gathered} F=P*(1+(r)/(n))^(nt) \\ =5000*(1+((3.5)/(100))/(4))^(4*8) \\ =5000*(1+(0.035)/(4))^(32) \\ =6607.59676 \end{gathered}

equired answer is 6607.60.

User Sumit Bijvani
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