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vichka [17]
3 years ago
13

You open a savings account on January 1, 2008 with $1,000. The interest rate stated on this account is 4%, compounded quarterly.

Business
1 answer:
arlik [135]3 years ago
3 0

Answer:

FV= $1,220.19

Explanation:

Giving the following information:

You open a savings account on January 1, 2008 with $1,000. The interest rate stated on this account is 4%, compounded quarterly.

Effective rate= 4/4= 1%

We need to use the following formula:

FV= PV*(1+i)^n

n= 4*5= 20

FV= 1000*(1.01^20)= $1,220.19

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If real gross domestic product (GDP) grew by 2 percent and the inflation rate was 2 percent, then nominal GDP grew by
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