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scZoUnD [109]
3 years ago
9

Financial Algebra 1. Unit 1: Simple and Compound Interest Quiz A..

Mathematics
1 answer:
Nikolay [14]3 years ago
8 0

Answer:

$56,558.1

Step-by-step explanation:

This is a question on compound interest.

The formula to calculate the Total Amount based on compound interest is given as:

A = P( 1 + r/n) ^nt

A = Total or Final amount in the account after t years

P = Principal/ Initial amount invested=$35,000

r = Interest rate = 12%

n = compounding Frequency = daily = using 30 days in a month = 30 × 12 = 360 days

t = time in years = 4

A = $35,000( 1 + 0.12/360)^360 × 4

A = $56558.08

Approximately to the nearest cent ≈ A = $56,558.1

Therefore, Priscilla should be expecting $56,558.1 in the account after 4 years.

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