Text: SAVINGS ACCOUNT: You deposit $400 in an account that pays 2% annual interest compounded quarterly.
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Step 1
Since the interest is compounded quarterly, we need to find the quarterly interest rate. To do this, we divide the annual interest rate by the number of compounding periods in a year. In this case, there are 4 quarters in a year, so we divide 2% by 4. Quarterly Show more…
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