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Question

By using the compound interest formula to compute the balance in account after the stated period of time, assuming that interest is compounded annually. $3000\$ 3000 is invested at an APR of 1.8%1.8 \% for 1212 years.

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Answered 2 years ago
Answered 2 years ago
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The goal is to calculate the balance in an account that has $3000\$3000 invested at an annual percentage rate of 1.8%1.8\% for 1212 years.

Assume that the account earns compound interest.

To calculate the balance, apply the Compound Interest Formula for interest paid once a year:

A=P×(1+APR)YA=P\times (1+APR)^Y

where

AA is the accumulated balance after YY years. PP is the starting principal APRAPR is the annual percentage rate (as a decimal) YY is the number of years

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