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Bumek [7]
3 years ago
6

Shandra's parents put $1,500 in her bank account for college tuition. At an interest rate

Mathematics
1 answer:
gavmur [86]3 years ago
5 0

Answer:

$6,427.99

Step-by-step explanation:

-We first find the effective annual interest rate as follows:

i_m=(1+i/m)^m-1\\\\=(1+0.0825/2)^2-1\\\\=0.084202

#We the use this rate to find the compounded amount after 18 years:

A=P(1+i_m)^n\\\\=1500(1.084202)^{18}\\\\=6427.99

Hence, the amount after 18 years is $6,427.99

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