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grandymaker [24]
2 years ago
12

Sarah opened a savings account with a $725 deposit. This account earns 3.5% annual interest compounded twice each month. How lon

g will it take her account to reach a balance of $2000 if there are no other deposits or withdrawals.
Mathematics
1 answer:
Karolina [17]2 years ago
7 0
Jody invested less in an account paying simple interest than she did in an account paying simple interest. At the end of the first year, the total interest from both accounts was Find the amount invested in each account.
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Answer:

The interest rate of the account is 3\%

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

A=P(1+\frac{r}{n})^{nt}  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

t=14\ years\\ P=\$1,863\\ A=\$2,830.97\\n=4  

substitute in the formula above  and solve for r

\$2,830.97=\$1,863(1+\frac{r}{4})^{4*14}  

(2,830.97/1,863)=(1+\frac{r}{4})^{56}  

(2,830.97/1,863)^{1/56}=(1+\frac{r}{4})

[(2,830.97/1,863)^{1/56}-1]=\frac{r}{4}    

r=4*[(2,830.97/1,863)^{1/56}-1]\\ \\r= 0.03

Convert to percent

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