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11 July, 22:12

Annette opened a compound interest savings account with $7000 in principal and an interest rate of 2.5%. If interest is compounded annually, how much is in the account after 8 years? interest compounded quarterly: A = P (1 + r) t A. $8544.50 B. $8528.82 C. $1544.50 D. $1528.82

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  1. 11 July, 23:52
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    The formula for Compound Interest is: A = P (1 + r) ^n

    Compound quarterly means every quarter.

    So, $7000 (1 + 0.025/4) ^8 x 4 = $8544.50 (A)
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