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3500 at 7.5 percent interest - Math

by Alexis
(birmingham)










































Liam deposits #3,500 in a saving account that pays 7 1/2% interest, compounded quarterly.
what is the first quarter's interest?

Comments for 3500 at 7.5 percent interest - Math

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Apr 09, 2012
1st Quarter Interest
by: Staff


Question:

by Alexis
(Birmingham)

Liam deposits $3,500 in a saving account that pays 7 1/2% interest, compounded quarterly.
what is the first quarter's interest?


Answer:


principal $3,500
annual rate 7 1/2%
compounded quarterly
time 1 quarter

quarterly interest rate = 7 1/2% ÷ 4 = 1.875%

r = 0.01875

[0.01875 is the decimal form of 1.875%. It is = 1.875%÷100. r = the interest rate per time period (quarterly in this case)]

The first quarter's interest = 0.01875 * $3,500 = $65.63



>>>The final answer is: $65.63




Thanks for writing.

Staff
www.solving-math-problems.com


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