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16 May, 12:01

Use the compound interest formula to find the compound amount on a $12,000 investment at 5% compounded quarterly for 4 years.

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  1. 16 May, 12:02
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    Total = Principal * [1 + (rate/n) ]^n*years

    Where "n" is the compounding periods per year

    Total = 12,000 * (1 + (.05/4)) ^ (4*4)

    Total = 12,000 * (1.0125) ^ (16)

    Total = 12,000 * 1.2198895477

    Total = 14,638.67
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