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In: Finance

If you invest $7,876 today and in years 1, 2 and 3 in an account that...

If you invest $7,876 today and in years 1, 2 and 3 in an account that earns 2.48% APR (compounded annually), how much will you have in the account in 13 years?

Solutions

Expert Solution

We use the formula:  
A=P(1+r/100)^n
where   
A=future value
P=present value  
r=rate of interest
n=time period.

A=7,876*(1.0248)^13+7,876*(1.0248)^12+7,876*(1.0248)^11+7,876*(1.0248)^10

=$41771.34(Approx)

jeff jeffy answered 1 year ago
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