Carol made a deposit of $1027.00 into a bank account that earns interest at 7.9% compounded quarterly. The deposit earns interest at that rate for two years. (a) Find the balance of the account at the end of the period. (b) How much interest is earned? (c) What is the effective rate of interest?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
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Carol made a deposit of $1027.00 into a bank account that earns interest at
7.9% compounded quarterly. The deposit earns interest at that rate for two
years.
(a) Find the balance of the account at the end of the period.
(b) How much interest is earned?
(c) What is the effective rate of interest?
(a) The balance at the end of the period is $
(Round the final answer to the nearest cent as needed. Round all
intermediate values to six decimal places as needed.)
Transcribed Image Text:Carol made a deposit of $1027.00 into a bank account that earns interest at 7.9% compounded quarterly. The deposit earns interest at that rate for two years. (a) Find the balance of the account at the end of the period. (b) How much interest is earned? (c) What is the effective rate of interest? (a) The balance at the end of the period is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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