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20 September, 11:07

A customer deposits $500 in an account that pays 4% annual interest. What is the balance after 3 years if the interest is compounded annually?

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  1. 20 September, 14:23
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    A (t) = P (1 + (r/n)) ^ (nt)

    A (3) = 500 (1+0.04/1)) ^ (1*3)

    A (3) = 500 (1.04) ^3

    A (3) = $562.43
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