A savings account earns 8% interest each year, compounded quarterly (4 times a year). If a person invests $100 and makes no further deposits or withdrawals, what is the balance in the account after 3 years?

Michael Geier asked Dec 22, 2022

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20 votes

Michael Geier asked Dec 22, 2022

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15 votes

Answer:

251.817012

Explanation:

1. Write out equation to get 100(1.08)^n*4

2. Use 3 for n

3. Simplify to get 100(1.08)^12

4. Solve to get 251.817012

Muslem Omar answered Dec 26, 2022

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