If 500 is invested at an interest rate of 3.75% per year, compounded quarterly, find the value of the investment after the given number of years. 2 years.
Added by Megan L.
Step 1
Since the annual interest rate is 3.75%, we can divide this by 4 to find the quarterly interest rate: Quarterly interest rate = (3.75% / 4) = 0.9375% Now, we can use the formula for compound interest to find the value of the investment after 2 years: A = P(1 + Show more…
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