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Lesson 3-3 Example 2

3-3. Example 2. Lesson 3-3 Example 2. Find the value of an investment of $3,500 for 1 year at 8% interest compounded quarterly. Round to the nearest cent. 1. Write the compound interest formula. 3-3. Example 2. Lesson 3-3 Example 2.

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Lesson 3-3 Example 2

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  1. 3-3 Example 2 Lesson 3-3 Example 2 Find the value of an investment of $3,500 for 1 year at 8% interest compounded quarterly. Round to the nearest cent. 1.Write the compound interest formula.

  2. 3-3 Example 2 Lesson 3-3 Example 2 Find the value of an investment of $3,500 for 1 year at 8% interest compounded quarterly. Round to the nearest cent. 2.How many times a year is quarterly? 4 n = 4 For how many years? 1 t = 1

  3. 3-3 Example 2 Lesson 3-3 Example 2 Find the value of an investment of $3,500 for 1 year at 8% interest compounded quarterly. Round to the nearest cent. 3.Substitute the principal, rate, number of times per year and number of years into the formula. = 3,500 (1 + 0.02)4(1) = 3,500 (1.02)4(1) = 3,500 (1.02)4 = 3,500 (1.082) = 3,787.00

  4. 3-3 Example 2 Lesson 3-3 Example 2 Find the value of an investment of $3,500 for 1 year at 8% interest compounded quarterly. Round to the nearest cent. 4.How much money is in the account at the end of 1 year? $3,787.00

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