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By using the compound interest formula to compute the balance in account after the stated period of time, assuming that interest is compounded annually. is invested at an APR of for years.
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VerifiedAnswered 2 years ago
Answered 2 years ago
Step 1
1 of 4The goal is to calculate the balance in an account that has invested at an annual percentage rate of for years.
Assume that the account earns compound interest.
To calculate the balance, apply the Compound Interest Formula for interest paid once a year:
where
is the accumulated balance after years. is the starting principal is the annual percentage rate (as a decimal) is the number of years
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