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ZanzabumX [31]
3 years ago
12

A deposit of $5,000 is made into a savings account which earns 3 3 4 % interest compounded annually. If no additional deposits o

r withdrawals are made, which amount is the total balance at the end of 10 years? A) $6,719.58 B) $6,875.00 C) $7,225.22 D) $7,401.22
Mathematics
2 answers:
defon3 years ago
3 0

I believe this is compound interest so we would use the formula:

FV = PV × (1 + r)n

So it would be A = p (1 = r) ^t

Input the numbers:

A = p (1 + 3 3/4%) ^10 = 7225.22

Anettt [7]3 years ago
3 0

Answer:

C)$7,225.22

Step-by-step explanation:

FV = PV × (1 + r)n

FV = 5000 × (1.0375)10 = 7,225.22

where:

FV = Future Value

PV = Present Value

r = annual interest rate

n = number of periods

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