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Mathematics 25 Online
OpenStudy (anonymous):

A savings certificate of $1700 pays 4.5% annual interest compounded yearly. What is the balance when the certificate matures in 5 years?

OpenStudy (anonymous):

2118.25 :)

OpenStudy (anonymous):

how did you get that ;)

OpenStudy (anonymous):

Oowweee Lol B n =B o (1+r n ) nt in this case n=1 since its once per year and t = 5 since its for 5 years Bo is your initial balance: 1700 in this case. and r is the rate that gets compounded. but make sure you use the decimal format and not the % format Now If You Put EVERYTHING In The RIGHT PLACE , Lol You Get 1700(1+.045)^5 And If You Calculate Right You Get 2118.25 ^_^

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