Algebra question "I'm lost"

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ZeRqhpngvba

Mathematics

Description

Suppose that $8500 is placed in an account that pays 19%  interest compounded each year. Assume that no withdrawals are made from the account. Do not do any rounding.

(a) Find the amount in the account at the end of 1 year?

(b) Find the amount in the account at the end of 2 year?

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Explanation & Answer

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A = P(1+r)^t

 a) P = 8500 , r = 19%  or 0.19   t = 1

substituting we get A = 8500 *(1+0.19)^1 = 8500*1.19 = 10115  (answer)

b) P = 8500 , r = 19%  or 0.19  t = 2

substituting we get A = 8500 *(1+0.19)^2 = 8500*1.19^2  = 8500*1.4161 = 12036.85  (answer)

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