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$700 principle earning 5% compounded monthly after nine years

User Jon Rubins
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1 Answer

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In order to solve this, we must use the compound interest equation. This equation is A = P(1 + (r/n))^nt. After plugging in the known values, we can get an equation of A = 700(1 + (0.05/12))^(9)(12). This can be simplified to an equation of A = 700(1.00416666667)^108. Finally, we can simplify further and get a final answer of $1,096.79.

Hope this helps!
User Tuncay
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