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Yakvenalex [24]
3 years ago
9

you deposit 200 into an account that pays 7% interest compounded quarterly. how much will you have in 5 years

Mathematics
1 answer:
scoray [572]3 years ago
8 0
First, convert R percent to r a decimal
r = R/100
r = 7%/100
r = 0.07 per year,

Then, solve our equation for A
A = P(1 + r/n)nt
A = 200.00(1 + 0.005833333/12)(12)(5)
A = $ 283.53

Summary:
The total amount accrued, principal plus interest,
from compound interest on an original principal of
$ 200.00 at a rate of 7% per year
compounded 12 times per year
over 5 years is $ 283.53.
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