SOLUTION: so if $200 is invested at interest rate of 4% compounded quarterly then the amount after 2 years is? round answer to nearest cent

SOLUTION: so if $200 is invested at interest rate of 4% compounded quarterly then the amount after 2 years is? round answer to nearest cent

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Question 979115: so if $200 is invested at interest rate of 4% compounded quarterly then the amount after 2 years is? round answer to nearest cent
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po{1 +r/n)^nt
P=200 { 1 + 0.4/4}^8. Each compounding divides the actual interest rate, but then there are eight compoundings total, and the parentheses have to be raised to the 8th power.
P=200(1.01)^8
=$216.57
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