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Lv 6
? asked in Education & ReferenceHomework Help · 6 years ago

compound interest question: Homework Help?

Problem: A man invests $1000 into an account eaarning 3.5% interest compounded quarterly. Three years later he invests an additional 500 dollars into the same account and one year later withdrawls all ogf the money how much did he withdraw.

My question is how to work with the 500. Should I calculate how much he will have from investing the 1000 for four years than calculate how much he got with the 500 in one year and add that together?

Or should I calculate how much he made after 3 years with the thousand, then calculate the 1 year of that total plus 500?

Thank you very much for your help.

1 Answer

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  • ?
    Lv 7
    6 years ago

    either way works, but I personally would do #1

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