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If 800 is invested at an interest rate of 3.75% per year, compounded quarterly, find the value of the investment after 2 years

Solution

If 800 is invested at an interest rate of 3.75% per year, compounded quarterly, find the value of the investment after 2 years

Solution

Amount : 862.01

Solution steps

Translate the problem into an equation:

A = 800 (1 + \frac{0.0375}{4})^{4 \cdot 2}

800 (1 + \frac{0.0375}{4})^{4 \cdot 2} = 862.00609 \dots

Round to the nearest hundredth:

862.01

Amount : 862.01

Popular Examples

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