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Kellee deposits $5000 in a savings account with an interest rate of 0.9% compounded monthly. If she makes no further deposits and no withdraws, how much will be in the account in 3 years?

1 Answer

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Given:

Kellee deposits $5000 in savings account with an interest rate of 0.9% compounded monthly.

So, P = 5000

interest rate = 0.9% = 0.009

compounded monthly, n = 12

We will find the money in the account after 3 years, t = 3

We will use the following formula:


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

substitute with the given values:


A=5000\cdot(1+(0.009)/(12))^(12\cdot3)\approx5136.787

Rounding to the nearest cent

so, the answer will be: $5136.79

User Dominic Fox
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