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Sergeeva-Olga [200]
3 years ago
14

Sarah had invested $800 in a savings account that paid 4.2% interest compounded annually. How much money was in the account afte

r 4 years, if he left the money untouched?​
Mathematics
1 answer:
schepotkina [342]3 years ago
5 0

Answer:  $943.11

<u>Step-by-step explanation:</u>

Compound Interest formula is:   A=P(1+r)^t     where

  • A is the Accrued amount (total earned)
  • P is the Principal (amount initially invested)
  • r is the interest Rate (convert percent to a decimal)
  • t is the Time (number of years)

It is given that; P = 800    r = 4.2% (0.042)       t = 4

A = 800(1 + 0.042)⁴

A = 800(1.042)⁴

A = 943.106   →   A = 943.11 (rounded to the nearest penny)

Sarah invested $800 for four years at an interest rate of 4.2% and accrued $943.11

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