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VladimirAG [237]
3 years ago
10

Emily would like to buy some new

Mathematics
1 answer:
bonufazy [111]3 years ago
6 0

Answer:

$14,277.80

Step-by-step explanation:

The standard formula for compound interest is given as;

A = P(1+r/n)^(nt) .....1

Where;

A = final amount/value

P = initial amount/value (principal)

r = rate yearly

n = number of times compounded yearly.

t = time of investment in years

For this case;

P = $7,400

t = 8 years

n = 4 (quarterly)

r = 9.5% = 0.095

Using equation 1.

A = $7,400(1+0.095/4)^(4×7)

A = $7,400(1.02375)^(28)

A = $7,400(1.929432606035)

A = $14,277.80

final amount/value after 8 years A =$14,277.80

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