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7nadin3 [17]
3 years ago
10

Ila invested $42,000 into an account earning 4% compounded annually. She makes no other deposits and does not withdraw any money

. What is the balance of Ila's account in 5 years?$42,846.75$51,099.42$54,738.88$92,027.17
Mathematics
1 answer:
Fantom [35]3 years ago
5 0

Alright, lets get started.

The amount of investment means principal : 42000

rate of interest : r : 4 % compounded annually

time of deposit t = 5 years

The formula for amount : A

A = P(1 + r/n)^nt

As interest is compounded annually, means n = 1

A = 42000 ( 1 + 4/100)^5

A = 42000 (1 + 0.04)^5

A = 42000 (1.04)^5

A = 42000 * 1.21665290

A = 51099.42 $

So the balance of Ila's account after 5 years will be 51099.42 $ : Answer

Hope it will help :)

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