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Sarah invests $10,000 for 7 years. Interest received is calculated at 3.6% per annum compounded quarterly. (a) What will be the balance at the end of the 7 years? (b) Find the amount of the total interest received over the 7 years. (c) By how much would the interest received change if the compound period would change to monthly instead of quarterly?

Sarah invests $10,000 for 7 years. Interest received is calculated at 3.6% per annum compounded quarterly. (a) What will be the balance at the end of the 7 years? (b) Find the amount of the total interest received over the 7 years. (c) By how much would the interest received change if the compound period would change to monthly instead of quarterly?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Q3 Sarah invests $10,000 for 7 years. Interest received is calculated at 3.6% per annum compounded quarterly. (a) What will be the balance at the end of the 7 years? (b) Find the amount of the total interest received over the 7 years. (c) By how much would the interest received change if the compound period would change to monthly instead of quarterly?
Transcribed Image Text:Q3 Sarah invests $10,000 for 7 years. Interest received is calculated at 3.6% per annum compounded quarterly. (a) What will be the balance at the end of the 7 years? (b) Find the amount of the total interest received over the 7 years. (c) By how much would the interest received change if the compound period would change to monthly instead of quarterly?
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Is part (c) correct? If, so could elucidate more on how you solved it? greatly Appreciated!

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