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18 May, 19:35

Jolene wants to invest $2000 into a money market account. Interest is to be 6.5% compounded annually, and she wants to take the entire amount out after 5 years to put towards the purchase of a new car. How much will she have her down payment in five years?

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  1. 18 May, 19:49
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    Interest = 650$

    Step-by-step explanation:

    Given:

    Invest Inv = 2000$, interest rate r = 6.5% compounded annually

    and time n = 5 years

    Formula for calculation is:

    Int = (Inv · r · n) / 100

    Int = (2000 · 6.5 · 5) / 100 = 650$

    Int = 650$

    God with you!
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