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kondor19780726 [428]
3 years ago
14

You deposit $1295 dollars in a mutual fund that provides an average return of 8.4% interest compounded annually.

Mathematics
1 answer:
Orlov [11]3 years ago
6 0

Answer: $2,277.5

Step-by-step explanation:

Hi, to answer this question we have to apply the compounded interest formula:

A = p (1+ r )^t

A = total amount (principal plus returns)

P = principal invest

r =interest rate (decimal form)

t = time (in this case years)

Replacing with the values given:

A = 1295 (1 + 8.4/100)^7

A = 1295 ( 1+ 0.084)^7

A = 1295 ( 1.084)^7

A = 2,277.5

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