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Megan puts $200.00 into an account to use for school expenses. The account earns 9% interest, compounded annually. How much will be in the account after 5 years?

User Adeem
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Answer:

To solve this problem, we can use the formula for compound interest:

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

where:

A = the final amount

P = the principal (initial amount)

r = the annual interest rate (as a decimal)

n = the number of times the interest is compounded per year

t = the time (in years)

In this case, we have:

P = $200.00

r = 0.09 (9% expressed as a decimal)

n = 1 (compounded annually)

t = 5 years

Plugging these values into the formula, we get:

A = $200.00(1 + 0.09/1)^(1*5)

A = $200.00(1.09)^5

A = $200.00(1.538624)

A = $307.72

Therefore, after 5 years, Megan will have $307.72 in her account.

Explanation:

User Jason Tholstrup
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