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stira [4]
3 years ago
8

Assume that an individual puts $10,000 into a savings account that pays 3% interest, with interest being compounded monthly. The

individual plans to withdraw the balance in 5 years to buy a car. If he does not make any further deposits over this period, how much will the individual be able to put towards his purchase?
Business
1 answer:
Lemur [1.5K]3 years ago
6 0

Answer: $11,620

Explanation:

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

A=$10,000(1+0.03/12)^12×5

A=$10,000(1+0.0025)^60

A=$10,000(1.0025)^60

A=$10,000(1.162)

A=$11,620

Note: A= Future value

P= principal

r=Interest rate

n= no.of time Interest is compounded

t= time money is invested.

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