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14 August, 19:07

If the APY of a savings account is 2.4% and if the principal in the savings account is $2200 for an entire year, what will be the balance of the savings account after all the interest is paid for the year? A. $2200 B. $2252.80 C. $2300 D. $2205.28

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  1. 14 August, 20:36
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    To solve this problem, we must recall that the formula for money with compound interest is calculated as:

    Total = Principal * (1 + Rate) ^ n

    Total = $2,200 * (1 + 0.024) ^ 1

    Total = $2,252.80

    Therefore the answer is letter B.
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