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2. An account is opened with $28000 earning12% interest compounded yearly. What is thebalance in the account after 4 years?

User Abdelhakim
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1 Answer

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The principal is $28000 with rate 12% compounded yearly .

To determine the balance after 4 years,


SI=(P* R* T)/(100)
SI=(28000*12*4)/(100)
SI=13440

The balance in the account after 4 years is the sum of principal and simple interest.


A=\text{ 28000}+13440
A=41440

Thus, the balance in the account after 4 years is 41440 dollar.

User Serge Bogatyrev
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7.6k points
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