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7nadin3 [17]
3 years ago
9

Sarah's parents started a savings account for her when she was 12. The plan her parents chose earns 3.2% each year, and her pare

nts initial deposit was $3500. How much will be in Sarah's savings account after 3 years when Sarah is ready to look for a car?
Mathematics
1 answer:
nekit [7.7K]3 years ago
5 0

Answer:

  $3846.87

Step-by-step explanation:

Assuming the interest is compounded annually, the value in 3 years is ...

  FV = P(1 +r)^t

  FV = $3500(1.032^3) ≈ $3846.87

Sarah's account will be worth about $3846.87.

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