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NARA [144]
3 years ago
7

Ava deposited $3,500 in an account that earned 4.375% interest

Mathematics
1 answer:
Bumek [7]3 years ago
5 0

Answer:

4335.61

Step-by-step explanation:

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

lets fill  in the variables,

P (principal) is 3500.00

r (rate) is .04375  - we do this in decimal form

n (number of times interest is doubled) here it is annually, could be monthly or daily too, but we are told annually, so we use 1

t (time) is 5 years

So:   3500(1+.04375/1) ^ 1(5)

pemdas

parenthesis first 1 +.04375/1 = 1.04375

exponents next 1 x 5 = 5

so now we have 3500 (1.04375) ^5

take 1.04375 to the power of 5 (pemdas) then multiplication

= 3500(1.2387465058)  or

A = 4335.61

This is the same result as calculating simple interest for 5 years but each year calculating off the new Principal amount that includes interest.

3500 x  .04375 = 153.125  or 3653.125   *(year one)

159.82 = 3812.95  

166.82 = 3979.77

174.11 = 4153.88  

181.73 = 4335.61

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