If the initial principal dollars, the annual interest rate , and interest is compounded quarterly (), find the amount after 3 years. The final amount is ____. (Round to the nearest hundredth.)
Answer & Analysis
Analysis
Question Analysis
This question tests the student's ability to apply the compound interest formula to a given set of values.
Key Concept Explanation
The key concept here is the application of the compound interest formula, which involves substituting the given values into the formula and performing the necessary calculations.
The formula for compound interest is .
Step-by-step Solution
1. Identify the given values: , , ,
2. Substitute these values into the compound interest formula:
3. Simplify inside the parentheses:
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