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riadik2000 [5.3K]
3 years ago
8

What is the final amount of $70.00 that is put into a savings account with 16% interest rate for 25 years, if the interest is co

mpounded 4 times per year?
Mathematics
1 answer:
laila [671]3 years ago
8 0
Okay, 16% of $70.00 is 
$11.20 
It says it was compounde 4 times a year for 25 years. 
11.2 × 4 = 44.80 
Thats how much is collected every year ($44.80)
Now multiply $44.80 by 25 years 
44.80 × 25 = 1120.00
They compounded $1120.00 in 25 years.
Add that to your starting $70.00 

The Final Amount is $1190.00
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