Question

Joe Diamond deposited $9,000 into the Rong Bank that pays 12 percent interest, compounded quarterly. Calculate the amount Joe will have in his account at the end of 4 years. (Using the Calculator)

Pt = Po(1+r)^n.

r = (12%/4)/100% = 0.03 = Quarterly % rate expressed nas a decimal.

n = 4comp/yr * 4yrsw = 16 Compounding
periods.

Pt = 9000(1.03)^16 = $14,442.36

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