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Murphy’s are saving up to go on a family vacation for 5 years. They invest $2900 into an account with an annual interest rate of 1.48% compound quarterly

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Answer:

A = 2900 + 1

Explanation:

The Murphys have been saving for a vacation for five years, investing $2900 in an account with a 1.48% annual interest rate, compounded quarterly. To determine the future value, the following formula is used:

P = A + r / n / (nt).

P = the initial investment amount,

r = the yearly interest rate,

n = how many times the interest is compounded each year,

t = how many years the investment will last.

To calculate the amount of compound interest, the formula is: P = A = P + r / (n + 1.48%) / (n / 1.48%). To multiply the amount by a factor of two, the result is A = 2900 + 1

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