You wish to deposit $7,000 in an account at the shylock bank. the bank pays interest at a nominal annual rate of 10% compounded quarterly. what is the future value in the account after seven years?

$13,975.47

Explanation:

Given:

Principal deposit amount(P) = $7,000

Annual interest rate = 10% = 0.1

Quarterly interest rate(r) = 0.1 / 4 = 0.025

Number of year = 7 years

Number of quarter(n) = 7 × 4 = 28

Computation of amount after 7 years:

Amount after 7 years = $13,975.47 (Approx)

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