Melissa P. answered • 11/12/14

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You need to use the compounding quarterly formula: A=P(1+r/n)

^{nt}Where P is your starting amount, R is your interest rate, N is the number of compounds per year (4 compounds since it is quarterly) and T is time or amount of years.

A=50,000(1+0.4/4)

^{4x7=28}A=50,000(1+0.1)

^{28}A=50,000(1.01)

^{28}A=50,000(1.32)

A=$66,064.55