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9 January, 01:38

Since your birth , your grandparents have been depositing $ 110 into a savings account every month. The account pays 12 % interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to:

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  1. 9 January, 03:07
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    FV = $83,365

    Explanation:

    Giving the following information:

    Since your birth , your grandparents have been depositing $ 110 into a savings account every month. The account pays 12 % interest annually.

    We need to use the following formula:

    FV = {A*[ (1+i) ^n-1]}/i

    A = annual deposit=110

    n = 12*18=216

    i=0.12/12=0.01

    FV = {110*[ (1.01^216) - 1]}/0.01 = $83,365
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