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MrRissso [65]
3 years ago
7

Suppose your​ friend's parents invest $ 10,000 in an account paying 5% compounded annually. What will the balance be after 8 ​ye

ars?
Mathematics
1 answer:
max2010maxim [7]3 years ago
8 0

Answer:

A = $14,745.544

Step-by-step explanation:

The equation for compound interest is 

A = P (1+i)t 

A = final value

P = amount invested (principal) (10000)

i = interest rate, expressed as a decimal (.05)

t = number of years invested (8)

This formula assumes annual compounding.

Plugging in what we know.

A = 10000(1.05)^8

A = 10000 (1.47745544)

A = $14,745.544

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