The amount if $2950 is invested at an annual rate of 8.4% compounded quarterly is $3486
Compound interest is given by:
[tex]A=P(1 + \frac{r}{n} )^{nt}[/tex]
where t is the period, r is the rate, P is the initial amount, A is the final amount and n is the times compounded.
Given P = 2950, r = 0.084, n = 4, t = 2, hence:
[tex]A=2950(1+\frac{0.084}{4} )^{4*2}\\\\A=\$3486\\\\For \ r=0.078, A=3742,t=2,n=1:\\\\3742=P(1+\frac{0.078}{1} )^{1*2}\\\\P=\$3220[/tex]
The amount if $2950 is invested at an annual rate of 8.4% compounded quarterly is $3486
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