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23 August, 14:54

A grandmother deposited $4,000 in an account that pays 5% per year compounded annually when her granddaughter was born. What will the value of the account be when the granddaughter reaches her 13th birthday?

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  1. 23 August, 15:19
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    A = P (1 + r/n) ^nt

    A = 4000 (1 + 0.05/1) ^ (13) (1)

    A = $7542.59
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