Rita deposited $8,000 in a savings account that provides for interest at the rate of 16% compounded quarterly.
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Required:
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Compute the balance in the account at the end of seven years.
What will be an ideal response?
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| FV | = $ 8,000(fn = 28, i = 4%) |
| = $ 8,000 × 2.998703 | |
| = $23,990 |
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