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9 July, 12:48

You want to deposit $12,000 in a bank at an interest rate of 8 percent per year. What is the future value of this money after five years? $15,315.38 $17,631.94 $16,830.62

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  1. 9 July, 12:59
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    12,000 (1.08) ^5=17,631.94

    Now to explain this. The 12,000 is your original deposit. The 1.08 is the interest rate. The reason it is 1.08 is because the interest is being added to the account. The 5 is the amount of years in the account.
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