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19 August, 20:11

After 8 years, What is the total amount of a compound interest investment of $25000 at 3% interest, compounded quarterly?

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  1. 19 August, 20:20
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    "Quarterly" means "4 times per year." The appropriate formula would then be

    A = $25000 (1 + 0.03/4) ^ (4*8) = $25000 (1.0075) ^32

    = $25000 (1.27) = $31752.78
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