
Elementary Math Fractions, Percentages, Word Problems, Equations, Inequations, Factorization, Expansion 
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March 10th, 2014, 11:35 PM  #1 
Senior Member Joined: Oct 2013 From: Far far away Posts: 429 Thanks: 18  Eric and his children
Eric deposited $32,000 in a savings account to save for his children's college education. The bank pays 8% tax deferred interest per year compounded quarterly. How much will his account be worth at the end of 18 years? My attempt: Here I used the formula: where A = amount, P = principal, r = interest rate and n = number of interest periods So: . At the end of 18 years Eric's deposit becomes $133,156.49 Am I correct? I am confused about the interest rate. It says 8% per year compounded quarterly. Does this mean the interest is 8%/4 per quarter? Thanks 
March 11th, 2014, 09:14 AM  #2  
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038  Re: Eric and his children Quote:
 

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