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Eva8 [605]
3 years ago
11

You deposit $500 in an account that pays 8% annual interest compounded yearly. What is the account balance after six years? Form

ula: A=C(1+r)t
Mathematics
1 answer:
Diano4ka-milaya [45]3 years ago
7 0
Principal, P = $500
r =8% = 0.08, the interest rate
n = 1, the compounding interval
t = 6 years

The value after 6 years is
A = P(1 +  \frac{r}{n} )^{nt}
That is,
A = $500*(1 + 0.08)⁶ = $793.44

Answer: $793.44

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