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spayn [35]
2 years ago
5

A customer deposits $500 in an account that pays 5% annual interest.

Mathematics
1 answer:
skelet666 [1.2K]2 years ago
4 0

~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$500\\ r=rate\to 5\%\to \frac{5}{100}\dotfill &0.05\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &3 \end{cases} \\\\\\ A=500\left(1+\frac{0.05}{1}\right)^{1\cdot 3}\implies A=500(1.05)^3\implies A\approx 578.81

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