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NNADVOKAT [17]
3 years ago
9

Stephens invests in an account that pays 3% compound interest annually. He invests $5,500. He uses the expression P(1+r)t to fin

d the total value of the account
Mathematics
1 answer:
Elena L [17]3 years ago
4 0

A = P*(1+r)^t

A = 5500*(1+0.03)^t

A = 5500(1.03)^t

If we knew the value of t, ie if we knew how long he keeps the money in the account, then we can find out how much money will be in there after t years.

For example, if t = 5 years go by, then

A = 5500*(1.03)^t

A = 5500*(1.03)^5

A = 6,376.00740865

A = 6,376.01

is the amount of money in the account at the end of 5 years.

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