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11 August, 19:23

Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.

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  1. 11 August, 19:49
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    A = $3136.51875

    Explanation:

    Given that:

    The principal = $3,000.00

    Rate = 9%

    Time = 6 months

    Since the amount is compounded quarterly;

    r = 9/4 = 2.25 %

    t = 6 months = 2 quarter

    Using the formula:

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

    A = 3000.00 (1 + 2.25/100) ^2

    A = 3000.00 (1 + 0.0225) ^2

    A = 3000.00 (1.0225) ^2

    A = 3000.00 (1.04550625)

    A = $3136.51875
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