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What is the ending balance in an account that opebs with $7000, earns 7.5% interest compound quarterly, and is held for 20 years.

  • accounting -

    Pt = Po(1+r)^n.

    r=(7.5%/4) / 100%=0.01875 = Quarterly % rate expressed as a decimal.

    n = 4Comp./yr * 20yrs = 80 Compounding
    periods.

    Pt = 7000(1.01875)^80 = $30,939.11

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