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Ann invested $9000 in an account that earns 4.7% interest, compounded annually. The formula for compound interest is A(t) = P(1 + i)t. How much did Ann have in the account after 5 years? A. $11,323.38 B. $11,319.63 C. $11,115.00 D. $13,230.00

Guest May 17, 2017
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A more common and descriptive formula is:

 

FV = PV x [1 + R]^N, where FV=Future Value, PV=Present Value, R=Interest rate per period, N=Number of periods.

FV = 9,000 x [1 + 0.047]^5

FV = 9,000 x 1.047^5

FV = 9,000 x 1.258152857750007

FV = $11,323.38                                                                                                                                  

Guest May 17, 2017
edited by Guest  May 17, 2017

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