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This is 9th-grade math

This is 9th-grade math-example-1

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Answer:

$2871

Explanation:

You want the value of an investment of $1900 after 12 years if it earns 3.5% interest compounded annually.

Compound interest

The value of the account is multiplied by (1+r) each year, so after 12 years it will be ...

A = P(1 +r)^t

A = 1900(1 +0.035)^12 ≈ 2871

The investment will be worth $2871 after 12 years.

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