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anonymous

  • one year ago

You invest an initial $1,000 in an account that has an annual interest rate of 2%, compounded quarterly. How much money will you have in the account after 5 years? Round your answer to the nearest whole number.

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  1. anonymous
    • one year ago
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    help me please!

  2. kropot72
    • one year ago
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    \[\large A=P(1+\frac{r}{n})^{nt}\] where A is the amount of the principal P after t years, r is the annual interest rate as a decimal fraction and n is the number of compounding periods per year. Do you follow so far?

  3. anonymous
    • one year ago
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    yes, i'm following you.

  4. kropot72
    • one year ago
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    Good. Can you now plug the given values into the equation and post the result?

  5. anonymous
    • one year ago
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    i'm having some trouble doing this...

  6. kropot72
    • one year ago
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    What part are you having trouble with?

  7. anonymous
    • one year ago
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    plugging the numbers and such in...

  8. kropot72
    • one year ago
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    Well I'll plug them in for you, and hopefully you'll see that its not very difficult. \[\large A=1000(1+\frac{0.02}{4})^{(4\times5)}\]

  9. anonymous
    • one year ago
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    thank you!

  10. kropot72
    • one year ago
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    You're welcome :)

  11. anonymous
    • one year ago
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    :)

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