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stiv31 [10]
3 years ago
12

total amount = P (1 + i)t What is the total amount that First Consumer Bank will receive after lending Jane $7,000 for three yea

rs at an interest rate of 5 percent, compounded annually? A. $8,103.38 B. $8,114.92 C. $8,358.37
Mathematics
1 answer:
Mazyrski [523]3 years ago
8 0

F = final amount = unknown

P = 7000 is the principal (amount loaned)

i = 0.05 is the decimal form of 5% interest rate

t = 3 years go by

Plug those three values into the formula below and simplify

F = P*(1+i)^t

F = 7000*(1+0.05)^3

F = 7000*(1.05)^3

F = 7000*(1.157625)

F = 8103.375

F = 8103.38

<h3>Answer: Choice A) $8,103.38</h3>
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