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You invet $800. 00 into an account that pay 2. 78% interet compounded quarterly for 5 year. Round to the nearet cent

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2 votes

Answer:

$918.86

Explanation:

You want the value of an account in which $800 is invested for 5 years earning interest of 2.78% compounded quarterly.

Account value

The account value is given by the formula ...

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

where P is the principal amount, r is the annual interest rate, n is the number of times per year interest is compounded, and t is the number of years.

A = $800(1 +0.0278/4)^(4·5) ≈ $918.86

The value of the account after 5 years is $918.86.

You invet $800. 00 into an account that pay 2. 78% interet compounded quarterly for-example-1
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