Suppose you decide to invest $14,000 into a saving account for 5 years assuming an interest rate

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Suppose you decide to invest $14,000 into a saving account for 5 years assuming an interest rate of 3% compounded quarterly, how much money will you have at the end of the 5th year? "

The formula for the compound interest is

where N is the number of compounding periods a year.

For instance, Annually: n = 1 Semi-annually: N = 2 Quarterly: n = 4. Monthly: n = 12

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Aug 24, 2022 04:27 AM

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Suppose you decide to invest $14,000 into a saving account for 5 years assuming an interest rate

Question:

r A = P(1 + 7 n nt r A = P(1 + 7 n nt

Expert Answer:

ANSWER ATTACHED IMAGE Here Principal 14000 Rate of interest r 3 Number o... View the full answer

Microeconomics An Intuitive Approach with Calculus

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