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Posted by on Wednesday, February 6, 2013 at 12:23pm.

You deposit $6,700 in a money-market account that pays an annual interest rate of 3.3%. The interest is compounded quarterly. How much money will you have after 4 years?

  • math - , Wednesday, February 6, 2013 at 12:28pm

    how many quarter years in 4 years
    4*4 = 16 quarters

    quarterly interest rate = .033/4 = .00825

    so every quarter we multiply what we have by 1.00825

    16 times we do that so
    1.00825^16 = 1.140490549

    now multiply that by the starting amount 6700

    = $7,641.29

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