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s344n2d4d5 [400]
3 years ago
6

Find the accumulated value of $ 740 at the end of 7 years using a nominal annual rate of interest of 6 % compounded quarterly.

Business
1 answer:
GaryK [48]3 years ago
5 0

Answer:

$1122.74

Explanation:

We are to find the future value of $740

The formula for calculating future value:

FV = P (1 + r/m)^nm

FV = Future value  

P = Present value  

R = interest rate  = 6

N = number of years = 7

m = number of compounding = 4

$740 x (1 + 0.06/4)^7x4 = $1122.74

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