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Thor deposited $190 into a savings account. The account earns 75%

interest, compounded annually. What is the balance of his account
after 2 years?
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User Teshguru
by
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1 Answer

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Answer:

The total balance of his account after 2 years=$581.875

Explanation:

The formula for calculating the compound interest is given as;

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

where;

A=Total amount after a given period of time

P=Initial deposit

r=annual Interest rate

n=number of times the interest is compounded annually

t=number of years the deposit is in the account

In our case;

P=$190

r=75%=75/100=0.75

n=1

t=2 years

Replacing;

A=190(1+0.75/1)^(1×2)

A=190(1.75)^2

A=190×3.0625

A=$581.875

The total balance of his account after 2 years=$581.875

User Tsroten
by
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