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stiv31 [10]
3 years ago
13

John has $1 in a savings account that earns 5% interest compounded annually

Mathematics
1 answer:
kiruha [24]3 years ago
3 0

Answer:

16 cents

Step-by-step explanation:

A = P (1 + r)n

A = $1 (1 + 0.05)3

A = $1 x 1.16

A = $1.16

To find the compound interest only;

Compound Interest = Final Value - Initial Value

Compound Interest = $1.16 - $1

Compound Interest = $0.16

Hence the compound interest John will earn in his savings account will be 16 cents.

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