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$540 Pays 4.2% Annually
what about a 6.6% interest
The formula for annual compound interest is A = P (1 + r/n) ^ nt:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
A=540 * 1.042^4
A= 540 * 1.178883
For A rate of 6.6%
A=540 * 1.066^4
A= 540 *
Get the difference
= $697.3047- $636.5971
Round of to the nearest Cents
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