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21 November, 00:21

Sumara Kato's savings account has a balance of $1663. After 19 years, how much interest

will she have earned if her rate is 5.5% compounded annually?

(1) $3159.70 (2) $2936.27 (3) $2942.27

(4) $2925.27

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  1. 21 November, 00:44
    0
    Answer: $2936.27

    Step-by-step explanation:

    Present value = $1663

    Rate = 5.5%

    Time (n) = 19years

    Future value = PV (1+r) ^n

    = 1663 (1+5.5%) ^19

    = 1663 (1.055) ^19

    =1663 * 2.766

    =4599.86

    Interest = Future value - Present value

    = $4599 - $1663

    = 2936
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