the compound amount on an investment of $8,500 at 12% interest, compounded quarterly, for 1 year.

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  1. P = Po(1+r)^n

    Po = $8500

    r = (12%/4)/100% = 0.03 = Quarterly %
    rate expressed as a decimal.

    n = 1yr * 4comp/yr. = 4 compounding

    Plug the above values into the given Eq and sole for P.

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