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Compounded Quarterly

$100 earns 4% compounded quarterly - what is this worth in 5 years?

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Solution Preview

For the question about compounding whether quarterly or semiannually, we need to adjust both the interest rate and the period as follows: -

Compounded quarterly

The interest rate must be divided by 4 ...

Solution Summary

This solution is comprised of a detailed explanation and calculation to find what the amount will worth if it earns 4% compounded quarterly.