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16 July, 05:28

Gianna invested $47,000 in an account paying an interest rate of 6.9% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 19 years?

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  1. 16 July, 08:47
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    Using the equation A=P (1 + (r/n)) ^nt.

    n=monthly, so it's 12.

    t=19 years

    r=6.9% as a decimal is. 069

    P=47,000

    .069/12=.00575

    .00575+1=1.00575

    nt=12*19=228

    1.00575^228=3.695

    3.695*47000=$173,711

    Answer: $173,711
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