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anonymous
 one year ago
You deposit $2000 in an account earning 3% interest compounded monthly. a. How much will you have in the account in 20 years?
b. How much interest will you earn?
anonymous
 one year ago
You deposit $2000 in an account earning 3% interest compounded monthly. a. How much will you have in the account in 20 years? b. How much interest will you earn?

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SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.2Hello! lets apply the same formula here again. except that this time you will have to tell me what to plug in for each of the variables (if you can, please do, if not, ask)/ \(\Large\color{blue}{ \displaystyle {\rm A}= {\rm P}\left(1+\frac{ {\rm r} }{ {\rm n} }\right)^{{\rm n} \times {\rm t}} }\)

SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.2I will tell you, that: "compounded monthly" means that it is compounded 12 times per year (so, n=12).

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0A=2000(1+.3/12)12*20?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.03% = 0.03 and you need an exponent symbol, but otherwise that's right. A=2000(1+.03/12)^(12*20)

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0then just subtract the original $2000 to get the interest

SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.2dw:1437324170863:dw

SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.2you can use a calculator for this...

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0A. 3641.51 b. 1,641.51

SolomonZelman
 one year ago
Best ResponseYou've already chosen the best response.2have you found the value of the full investment amount after 20 years? if you have, then subtract the initial amount, subtract 2000 from this....
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