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Alyson deposits $500 in the bank for 12 years. The bank offers her a 4%

simple interest rate. How much money will be in her account at the end of
the 12 years? (Remember to round your answer to the nearest cent if
necessary.)

User Gabi Davar
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1 Answer

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~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$500\\ r=rate\to 4\%\to (4)/(100)\dotfill &0.04\\ t=years\dotfill &12 \end{cases} \\\\\\ A = 500[1+(0.04)(12)] \implies A = 740

User Ton Van Den Heuvel
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