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math

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please help how do you figure out the compound interest on $8,000 invested for one year at 6% compounded quarterly. rounded to the nearest dollar

  • math -

    1.5% (1/4 of 6%) interested is added each quarter. After four quarters, the value of the account is
    8000*(1.015)^4 = $8491.

    If interest had been compounded annually instead of quarterly, then the amount at the end of one year would be 8000*1.06 = $8480.

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