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4 votes
4 votes
Alvarez has $650 deposited into his bank account. The account earns simple interest of 5. 5% per year. No other money is added or withdrawn from the account for a period of four years. What is the total amount of money in the account after four years?

User Markus Malessa
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1 Answer

10 votes
10 votes

Answer:

$793

Explanation:

The amount of money in an account earning simple interest is given by the formula ...

A = P(1 +rt)

where P is the principal invested at rate r for t years.

__

Using the values given in the problem statement, the account balance can be found to be ...

A = $650(1 +0.055×4) = $650×1.22 = $793

There will be $793 in the account after 4 years.

User MhKarami
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