Answered: If $500 is deposited each quarter into…

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Related questions

Question

If $500 is deposited each quarter into an account paying 8% compounded quarterly for 3 years, find the interest earned during each of the 3 years.

Expert Solution

Step 1: The given data is:

$table row cell straight P subscript 0 end cell equals cell $ 500 end cell row straight r equals cell 8 percent sign end cell row straight t equals cell 3 space years end cell end table$

Compounded quarterly n=4

$table row straight i equals cell straight r over 4 end cell row straight i equals cell fraction numerator 8 percent sign over denominator 4 end fraction end cell row straight i equals cell 2 percent sign end cell row blank equals cell 0.02 end cell row cell straight t apostrophe end cell equals cell 3 cross times 4 end cell row blank equals 12 end table$