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5 votes
An initial balance of $4,000 grows at a rate of 12.3% compounded quarterly. What is the balance after 5 years?

1 Answer

5 votes

Answer:

7330.36

Explanation:

A = P (1+i)^n

n = 4×5 = 20

i = 0.03075

12.3% / 4 = 3.075 × 1/100

= 0.03075

A = 4000 ( 1+ 0.03075 ) ^20

= 7330.36

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