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Vlad1618 [11]
1 year ago
9

1. You decide to deposit $20,000 into an account that pays 6.5% interest compouded monthly. How much money will you have in the

account after 40 years? 2. You put $20,000 into an account that pays 7.25% compounded continuously. How much money will you have in there after 10 years?
Mathematics
1 answer:
sattari [20]1 year ago
6 0

use the formula for interest compounded in n periods per year

A=P\cdot(1+\frac{r}{n})^{nt}

where n should 12 since it is compounded monthly

\begin{gathered} A=20,000\cdot(1+\frac{0.065}{12})^{12\cdot40} \\ A=267,392.05 \end{gathered}

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