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Jose now has $500. how much would he have after 6 years if he leaves it invested at 7.0% with annual compounding?

User Dieki
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1 Answer

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The multiplier for increasing by 7% is 1.07. To get our answer we times the initial amount of money by the multiplier to the power of the number of years he leaves it in for:

500 x 1.07⁶ (The power is 6, because the money is left in for 6 years)
= $750.3651759
= $750.37
(rounded)

So after 6 years, Jose will have $750.37

User Anirudh
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