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21 July, 13:42

You deposit $1,000 in a certificate of deposit that pays 5.9% interest, compounded annually. What is your balance after 3 years.

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  1. 21 July, 14:45
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    The formula is

    A=p (1+r) ^t

    A future value?

    P present value 1000

    R interest rate 0.059

    T time 3years

    A=1,000 * (1+0.059) ^ (3)

    A=1,187.65
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