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Nina has $6,140 in an account. The interest rate is 5% compounded annually.

To the nearest cent, how much will she have in 3 years?

1 Answer

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Answer:

$7107.82

Explanation:

You want the value of an investment of $6140 at 5% compounded annually for 3 years.

Compound interest

The formula for the account value is ...

A = P(1 +r)^t . . . . . . P is the investment at rate r for t years

Using the given values, we find Nina has ...

A = $6140·(1 +0.05)^3 ≈ $7107.82

Nina will have $7107.82 in 3 years.

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Nina has $6,140 in an account. The interest rate is 5% compounded annually. To the-example-1
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