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bixtya
11 days ago
12

Mark is investing $8,000 in an account paying 5.5% interest compounded monthly.

Mathematics
1 answer:
Inessa [8.9K]11 days ago
5 0

Response:

The equation is F = P(1 + interest rate)^n

In this case,

P =8000 dollars

interest rate =5.5% = (5.5/12)/100 =0.004583 (monthly compounding)

n =7 x 12 =84 (monthly compounding)

=> Mark's final account balance after 7 years

F = 8000*(1+0.004583)^84 =11746.2503 dollars

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Answer:

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