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If you deposit \$4,500 at 5\% annual interest compounded quarterly, how much money will be in the account after 10 years? PLEASE SHOW WORK

1 Answer

4 votes

Answer:

7396.29 dollars

Explanation:

compound quarterly means 4 times a year

% annually means the rate is divided by 4(year has 4 quarter

formula to find the compound interest:

A=P(1+r)^t , where t is the time

A=P(1+0.05/4)^4

A=4500(1+0.05/4)^40=7396.29

User Paul Caheny
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