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Chase Opened a savings account and deposited 800.00 as principal the account earns 11% interest compounded quarterly what is the balance after 7 years

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Solution

For this case we can use the following formula:


A=P(1+(r)/(n))^(nt)

And we have t= 7 years, n= 4 (quarterly) P = 800 and r= 0.11

and replacing we got:


A=800(1+(0.11)/(4))^(4\cdot11)=2639.31

Then the balance would be 2639.31$

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