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Schach [20]
3 years ago
5

Addison deposited $1,000 in a savings account at her bank. Her account will earn an annual simple interest rate of 5.8%. If she

makes no additional deposits or withdrawals, how much money will she have in her account in 9 years?
Business
1 answer:
zhenek [66]3 years ago
8 0

Answer:

$1,522

Explanation:

For computing the future value, first we have to determine the simple interest which is shown below:

= Principal × rate of interest × time period

= $1,000 × 5.8% × 9 years

= $522

Now the future value would be

= Principal amount + Simple interest

= $1,000 + $522

= $1,522

First, we simply applied the simple interest formula then we compute the future value by adding the principal amount and the simple interest

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