SOLUTION: suppose that 1200 is invested at an interest of 3.5%. how much is the investment worth after 18 months if interest is compounded quarterly
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Question 644013: suppose that 1200 is invested at an interest of 3.5%. how much is the investment worth after 18 months if interest is compounded quarterly
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
suppose that 1200 is invested at an interest of 3.5%. how much is the investment worth after 18 months if interest is compounded quarterly
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A(t) = P(1+(r/n))^(nt)
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A(3/2) = 1200(1+(0.035/4))^((4*(3/2))
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A(3/2) = 1200(1.00875)^(6)
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A(3/2) = $1264.39
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Cheers,
Stan H.
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