SOLUTION: calculate the accumulated amount of an investment of $40,000 receiving 5% annual interest compounded quarterly for 2 years

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Question 281119: calculate the accumulated amount of an investment of $40,000 receiving 5% annual interest compounded quarterly for 2 years
Answer by checkley77(12844) About Me  (Show Source):
You can put this solution on YOUR website!
P(1+R/N)^T*N
WHERE R=RATE IN DECIMAL, N=THE NUMBER OF PERIODS PER YEAR, T=NUMBER OF YEARS.
40,000(1+.05/4)^2*4
40,000(1+.0125)^8
40,000(1.0125)^8
40,000*1.1045=$44,179.44 ANS. FOR THE INVESTMENT AFTER 2 YEARS.