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sashaice [31]
3 years ago
15

An investment of P=1237.50 is compounded annually with a 6.75% APR . Find the value of the investment after 5 and a half years.

Mathematics
2 answers:
Ber [7]3 years ago
5 0

Answer:

Under compound interest, not only does the principal generate interest, so does the previous accumulated interest. The future value F of P dollars compounded annually for t years with an annual percentage rate (APR) r expressed as a decimal is .

katen-ka-za [31]3 years ago
3 0

Answer:

  • 1772.43

Step-by-step explanation:

<u>Given:</u>

  • Principal P = 1237.50
  • Interest rate r = 6.75% or 0.0675
  • Number of compounds n = 1
  • Time t = 5.5 years

<u>Find the total:</u>

  • A = P(1 + r/n)^{nt}
  • A = 1237.5*(1+0.0675)^{5.5} = 1772.43
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