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olganol [36]
3 years ago
15

Heather is looking at different options for retirement investing. She finds an IRA that will pay 5% interest on the balance ever

y year until she retires. Once she retires it will no longer pay any interest on the balance. She decides to do this and invests $5,000 in the account. She retires 20 years after she opened the account. If she has still not withdrawn any money, how much money is in the account when she retires?
Mathematics
2 answers:
mezya [45]3 years ago
8 0
The formula is
A=p (1+r)^t
A the amount ones she retires ?
P amount invested 5000
R interest rate 0.05
T time 20 years
A=5,000×(1+0.05)^(20)
A=13,266.49
kirza4 [7]3 years ago
8 0

Answer:

D. $13,266.50

Step-by-step explanation:

$13,266.50 This is an exponential function that can be modeled by y = 5000(1.05)x. Since you want to know how much is in the account 20 years later plug in 20 for x.

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