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Vesna [10]
3 years ago
10

Morticia took the money she made working this summer, $3125.00, and placed it in her bank account. Her account makes 6% interest

, and she plans to leave it there for 10 years where it will be compounded annually. How much will she have at the end of 10 years? How do you know?
Mathematics
1 answer:
oee [108]3 years ago
8 0

Answer:

$5,596.40

Step-by-step explanation:

Lets use the compound interest formula to solve:

A=P(1+\frac{r}{n} )^{nt}

<em>P = initial balance</em>

<em>r = interest rate (decimal)</em>

<em>n = number of times compounded annually</em>

<em>t = time</em>

First, change 6% into a decimal:

6% -> \frac{6}{100} -> 0.06

Next, plug the values into the equation:

A=3,125(1+\frac{0.06}{1})^{1(10)}

A=5,596.40

After 10 years, Morticia will have $5,596.40. We know this because by using the compound interest formula and plugging in all the values, you will get the correct answer.

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