Question 6 • LVA - Mathematical Modeling - Spring
Quarterly compounding means 4% is divided into 4 periods per year, so the rate per period is 0.04 ÷ 4 = 0.01, and there are 4 × 4 = 16 periods. The interest is $4,706[(1.01)^16 − 1] ≈ $812.16, so the correct choice is $812.16.
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