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27 August, 14:56

Suppose your parents deposited $1,500 in an account paying 3.5% interest compounded annually (once a year) when you were born. Find the account balance after 18 years. (round to the nearest cent).

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  1. 27 August, 15:19
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    A=p (1+r) ^t

    A future value

    P present value 1500

    R interest rate 0.035

    T time 18

    A=1,500 * (1+0.035) ^ (18)

    A=2,786.23
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