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An investment of $10,000 is made in a government bond that will pay 6% interest compounded annually. At the end of four years, what is the total number of dollars in this investment? Express your answer to the nearest whole number.

 Feb 11, 2021
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The formula is \(A = P(1 + \frac{r}{n})^{nt}\), where:

 

P = principal (starting amount)

r = annual rate

n = compound type (annually)

t = time in years

 

Plug in P = 10,000, r = 6%, n = 1, and t = 4 to get A = $12624.

 Feb 20, 2021

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