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If $8,500 is deposited in a compound interest account paying 3.9% interest annually, how much will be in the account after 12 years? Round your answer to the nearest cent.

2 Answers

1 vote
$8,500/12 yr = $13,452.58
User Daniel Rhoden
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5 votes

The formula for amount is given by:


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

Now we are given ,

Principal (P) =$8500

rate (r) =3.9% = 0.039

period of interest (n) =1 for compounded annually

time (t) = 12 years

Plugging these values in the formula,


A=8500(1+(0.039)/(1))^(1*12)

Amount =$13452.5773053

Answer : There will be $13452.5773053 in the account after 12 years.

User Vimal
by
8.4k points

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