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vichka [17]
3 years ago
14

Maria has 90$ in a saving account.The interest rate rise a 5% compounded annually.to the nearest cent, how much will he have in

3 years
Mathematics
1 answer:
-Dominant- [34]3 years ago
8 0

Answer:

$104.19

Step-by-step explanation:

We will use the compound interest formula to solve this:

A=P(1+\frac{r}{n} )^{nt}

<em>P = initial balance</em>

<em>r = interest rate (decimal)</em>

<em>n = number of times compounded annually</em>

<em>t = time</em>

<em />

First, lets change 5% into a decimal:

5% -> \frac{5}{100} -> 0.05

Now, plug the values into the equation:

A=90(1+\frac{0.05}{1})^{1(3)}

A=104.19

After 3 years, Maria will have $104.19

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