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anonymous
 5 years ago
ok walk me through this please: Find the accumulated amount at the end of 10 years for a principal of $4500 Compounded quarterly at a yearly interest rate of 3%.
anonymous
 5 years ago
ok walk me through this please: Find the accumulated amount at the end of 10 years for a principal of $4500 Compounded quarterly at a yearly interest rate of 3%.

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anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0formula is \[4500(1+\frac{.03}{4})^{4\times 10}\]

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0which formula is that exactly

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0clear what i put where and why?

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0ok slowly. principle is 4500 interest is 3%=.03 number of compounding periods per year is 4 number of years is 10

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0.03 is the annual rate; but its determined 4 times a year so it gets divided by 4.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0general formula is \[P(1+\frac{r}{n})^{ny}\]

amistre64
 5 years ago
Best ResponseYou've already chosen the best response.0since the time span is now 4 times ayear; that means that for every year that goes by we have a factor of 4; so ^4t`

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0ok is that that formula R=Pi/1(1+i)^n

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0where r is the interest rate (as a decimal) P is the principle n is the number of compounding periods per year and Y is the number of years

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0this is compounded quarterly so you use n = 4

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0i get \[4500(1+\frac{.03}{4})^{40}=6067.57\] rounded
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