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You deposit $500 that pays 4.44% Interest monthly, how much do you have in your account after 20 years?

User DMJ
by
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1 Answer

1 vote

Answer:

$1,213.14

Explanation:

You are going to want to use the compound interest formula, which is shown below.


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

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

Now lets plug in the values into the equation:


500(1+(.0444)/(12))^(20(12)) = 1,213.14

Your answer is $1,213.14.

User XDaevax
by
8.5k points

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