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anonymous
 one year ago
How much will $1000 deposited in an account earning 7% interest compounded annually be worth in 20 years?
anonymous
 one year ago
How much will $1000 deposited in an account earning 7% interest compounded annually be worth in 20 years?

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SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.1This is the formula you need: \(\Large\color{blue}{ \displaystyle {\rm A}= {\rm P}\left(1+\frac{ {\rm r} }{ {\rm n} }\right)^{{\rm n} \times {\rm t}} }\) \(\Large\color{blue}{ \displaystyle {\rm r} }\)  the interest rate (written as a decimal) \(\Large\color{blue}{ \displaystyle {\rm n} }\)  the number of times that interest is compounded per year. \(\Large\color{blue}{ \displaystyle {\rm t} }\)  number of years (of investment). \(\Large\color{blue}{ \displaystyle {\rm P} }\)  the initial amount (the original deposite that you made into the bank). \(\Large\color{blue}{ \displaystyle {\rm A} }\)  the amount that you will get after this investment.

SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.1P = 1000 (that is what you begin with) r = 0.07 (because your interestrate is 7%, and that is 0.07 as a decimal) n = 1 (because it says "compunded annually") t = 20 (because it is asking you for the total amount after 20 years of investment)

SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.1All you have to do is to plug your numbers and calculate the value of the investment (the value of A). If you have questions, ask.
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