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devlian [24]
3 years ago
12

How much money will you have if you started with $1250 and put it in an account that earned 6.7% every year for 14 years?

Mathematics
1 answer:
KatRina [158]3 years ago
3 0

Answer:

$3098.93

Step-by-step explanation:

We can use the formula for compound growth to solve this. The formula is:

F=P(1+r)^t

Where

F is the future value (the value at end of 14 years, our answer)

P is the initial amount invested ($1250)

r is the interest rate, in decimal (6.7% is 0.067)

t is the time in years (14, in our case)

<em>Plugging in all the information</em> we have:

F=P(1+r)^t\\F=1250(1+0.067)^14\\F=1250(1.067)^14\\F=3098.93

The account will accrue $3098.93 after 14 years.

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