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lesantik [10]
3 years ago
15

You have $ 400 and a bank is offering 4.0 % interest on deposits. If you deposit the money in the​ bank, how much will you have

in one​ year?
Business
1 answer:
vladimir2022 [97]3 years ago
6 0

Answer:

I will have $416 in a year's time.

Explanation:

In calculating the amount in the deposits account in one year's time I used the Future Value formula,which is FV=PV*(1+r)^n

PV is present value=$400

r=rate=4%

n=year=1

FV=400(1+0.04)^1

FV=$416

Alternatively, one could calculate 1 year interest on the principal by multiplying it by 4% ,then add the interest of $16 to principal of $400.

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