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Algebra8
Jan 29, 2012, 07:55 AM
Find the ending balance in an account that opens with $3,000, earns 4.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.) I used A=P(1 ti)N = 3,000(1 o.01125) = 4693.13. (which is wrong. Please show me how you arrived with your answer. I have a deadline to meet to meet today before 5p. Sorry

ArcSine
Jan 30, 2012, 04:40 AM
You were on the right track, but you compounded for only 40 periods. Quarterly compounding and 20 years = 80 periods as the exponent, not 40.