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You deposit $300 in an account earning 8% interest compounded annually. How much will you have in the account in 15 years?

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Answer:

To calculate the amount you will have in the account after 15 years, we can use the formula for compound interest:

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

Where:

A = the future value of the investment/amount in the account

P = the principal amount (initial deposit)

r = the annual interest rate (as a decimal)

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

t = the number of years

In this case, you deposited $300, the interest rate is 8% (0.08 as a decimal), and the interest is compounded annually (n = 1). You want to find out the amount after 15 years.

Plugging these values into the formula, we get:

A = 300(1 + 0.08/1)^(1*15)

Simplifying:

A = 300(1 + 0.08)^15

Using a calculator or manually calculating, we find:

A ≈ 300(1.08)^15

A ≈ 300(1.627424)

A ≈ 488.23

So, after 15 years, you will have approximately $488.23 in the account.

Explanation:

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