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Chris invests $800 into an account with a 2.2% interest rate that is compounded quarterly.

How much money will he have in this account if he keeps it for 5 years?
Round your answer to the nearest dollar.

User Mcklayin
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1 Answer

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Final answer:

To calculate the value of the account after 5 years, use the formula for compound interest. By plugging in the given values, Chris will have approximately $876 in the account after 5 years.

Step-by-step explanation:

To calculate the value of the account after 5 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial amount), r is the annual interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the number of years.

In this case, Chris invested $800, the interest rate is 2.2% (or 0.022 as a decimal), and it is compounded quarterly (so n = 4). Plugging these values into the formula, we get: A = 800(1 + 0.022/4)^(4 * 5).

Calculating this, we find that the value of the account after 5 years will be approximately $876.49. Rounded to the nearest dollar, Chris will have approximately $876 in the account after 5 years.

User Sanghyun Lee
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