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Solve the Problem A=P(1+rn)ntA = P \left( 1 + \frac { r } { n } \right) ^ { n t }

Question 25

Multiple Choice

Solve the problem.
-Find the amount in a savings account at the end of 4 years if the amount originally deposited is $9000 and the interest rate is 5.5% compounded monthly. Use: A=P(1+rn) ntA = P \left( 1 + \frac { r } { n } \right) ^ { n t } where:
A=A = final amount
P=$9000\mathrm { P } = \$ 9000 (the initial deposit)
r=5.5%=0.055\mathrm { r } = 5.5 \% = 0.055 (the annual rate of interest)
n=12\mathrm { n } = 12 (the number of times interest is compounded each year)
t=4t = 4 (the duration of the deposit in vears)


A) $433,980.00
B) $12,329.96
C) $9166.14
D) $11,209.06

Correct Answer:

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