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27 August, 10:38

1. Dominic Joseph deposits $5,000 in a new savings account at his local bank. The account pays 5.5 percent interest compounded annually. At the end of 6 years, how much will Dominic's account be worth?

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  1. 27 August, 13:19
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    The future value is $6,894.21

    Explanation:

    Giving the following information:

    Dominic Joseph deposits $5,000 in a new savings account. The account pays 5.5 percent interest compounded annually.

    To calculate the future value, we need to use the following formula:

    FV = PV * (1+i) ^n

    PV = 5,000

    i = 0.055

    n=6

    FV = 5,000 * (1.055) ^6 = $6,894.21
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