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26 September, 18:32

Phillip opened a savings account with an annual interest rate of 8% and an initial deposit of $3500. If his interest is compounded quarterly, how much is in Phillip's account after 2 years? Round your answer to the nearest cent.

interest compounded quarterly: A = P (1 + r / 4) to the power of 4 t

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  1. 26 September, 20:49
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    Using the formula:

    A=P (1+r/100) ^4t

    where:

    p=principle=$3500

    t=terms in the given time period=2*4=8 terms

    rate=8/4=2%

    thus:

    A=3500 (1+2/100) ^8

    =$4100.81
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