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A deposit of $1,500 is made into a savings account which earns 4 5 /8
% interest compounded annually. If no additional deposits or withdrawals are made, which amount is the total balance at the end of 5 years?

Respuesta :

Answer:

$1880.48  to the nearest cent.

Step-by-step explanation:

Total after n years = P(1 + r)^n    where P = initial deposit, r = the rate as a fraction.

4 5/8 % = 0.04625.

Here the total after 5 years  = 1500(1 +  0.04625)^5

= $1880.48  to the nearest cent.

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