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Paladinen [302]
3 years ago
9

You invest $2000 in an account at 4.5% per year simple interest. How much will you have in the account at the beginning of the 8

th year? Round your answer to the nearest whole dollar.
Mathematics
1 answer:
77julia77 [94]3 years ago
8 0

I will have $2721 at the beginning of the eighth year.

The beginning of the eighth year is the end of <em>seven years of investing</em>.

The formula for the future value (FV) of my investment is

FV = <em>C</em>(1 + <em>r</em>)^<em>n</em>

where <em>C</em> = my initial cash

<em>r</em> = the interest rate

<em>n</em> = the number of years

FV = $2000(1.045)^7 = $2722

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