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 one year ago
$25,000 is invested at 4% compounded annually for 7 years, find the current balance in the bank account based on the given conditions
 one year ago
$25,000 is invested at 4% compounded annually for 7 years, find the current balance in the bank account based on the given conditions

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TheDumDum
 one year ago
Best ResponseYou've already chosen the best response.0its for liberal arts

zepdrix
 one year ago
Best ResponseYou've already chosen the best response.0The formula for finding compound interest is as follows,\[\large A=P\left(1+\frac{r}{n}\right)^{nt}\] They gave us this information, ~our `principle amount` \(P\) is $25,000. ~the `rate of compounding` \(r\) is 4%, or as a decimal, 0.04. ~the `time period` \(t\) is 7 years. ~the `number of compoundings per period` \(n\) is 1 (since it's compounded anually). So we just plug these values in and solve for \(A\)! :)

zepdrix
 one year ago
Best ResponseYou've already chosen the best response.0\[\large A=25000\left(1+\frac{0.04}{1}\right)^{1\times7}\]

zepdrix
 one year ago
Best ResponseYou've already chosen the best response.0You'll want to use your calculator to simplify that down. Lemme know if it's too complicated :D
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