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Mr.Gery deposits 4,000 in a saving that past 3 1/2 interest compounded quarterly.what is his balance after one year

1 Answer

1 vote

Answer:

$4141.85

Explanation:

You want to know the balance in an account in which a $4000 deposit earns 3.5% interest compounded quarterly for 1 year.

Compound interest

The balance can be found using the compound interest formula:

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

where principal P earns interest at rate r compounded n times per year for t years.

A = $4000(1 +0.035/4)^(4·1) ≈ $4141.85

Mr. Gery's balance after 1 year is $4141.85.

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Mr.Gery deposits 4,000 in a saving that past 3 1/2 interest compounded quarterly.what-example-1
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User Taha Jahangir
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