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A bank offer 3% interest each yr you invest 1500. Write a equation to model this situation for x years. How much will be in the account after 10 years?

User Alon Mahl
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1 Answer

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Answer:

Explanation:

We would apply the formula for determining compound interest which is expressed as

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

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 1500

r = 3% = /100 = 0.0

n = 1 because it was compounded once in a year.

t = x years

Therefore, the equation to model this situation is

A = 1500(1 + 0.03/1)^1 × x

A = 1500(1.03)^x

When x = 10 years, then

A = 1500(1.03)^10

A = $2016

User Slaven Rezic
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