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melamori03 [73]
3 years ago
11

Lucy deposited $1,000 into an account that earns 2.5% compound interest, compounded yearly. How much interest will Lucy earn aft

er 8 years?
my answer is $1218.40 but supposedly it's wrong.
Mathematics
1 answer:
dexar [7]3 years ago
4 0

Answer:

the balance in the account after 20 years is $819

Step-by-step explanation:

The computation of the balance in the account after 20 years is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $500 × (1 + 2.5%)^20

= $500 × 1.025^20

= $819

Hence, the balance in the account after 20 years is $819

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