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Find the total amount in Mr.hunter account, if he invests $900 for 2 years at 6% interest rate

User HKandulla
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1 Answer

2 votes

Answer:

To find the total amount in Mr. Hunter's account, we need to use the formula:

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

where:

A = the total amount

P = the principal amount (the initial investment)

r = the annual interest rate (as a decimal)

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

t = the number of years

In this case, P = $900, r = 0.06, n = 1 (compounded annually), and t = 2.

So, plugging in these values, we get:

A = 900(1 + 0.06/1)^(1*2)

A = 900(1.06)^2

A = 900(1.1236)

A = $1,011.24

Therefore, the total amount in Mr. Hunter's account after 2 years is $1,011.24.

User Gal Sosin
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