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Mathematics 14 Online
OpenStudy (anonymous):

what is the interest on $2500 compounded quarterly for 2 years at 9%

OpenStudy (anonymous):

9% is the annual interest rate, quarterly interest rate would be: \[(1+ quarterlyInterestRate)=\sqrt[4]{(1+annualInterestRate)}\] \[(quarterlyInterestRate)=\sqrt[4]{(1+0.09)}-1\] \[(quarterlyInterestRate)=2.1778%\]

OpenStudy (anonymous):

Just plug the numbers into compounded interest formula!

OpenStudy (anonymous):

\[(futureValue)=(currentValue)*(1+interestRate)^periods\] \[(futureValue)=($2500)*(1+0.021778)^8\]

OpenStudy (anonymous):

Then subtract the original value from the final and that is the amount that is a result of interest

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