Haven S.

asked • 02/27/16

what is the balance of a $1000 principal earning 6.25%, compounded quarterly, after 7 years?

algebra 1

1 Expert Answer

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Ian S. answered • 02/27/16

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To find a future value compounded quarterly use this equation:
FV=PV(1+r/4)^4t
 
So here it would look like this
FV=1000(1+.0625/4)^4(7)
FV=1000(1.015625)^28
FV=1543.599=1543.60
 
So the balance after 7 years is $1543.60
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