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18 December, 13:16

You are given $100 for your birthday. You put the $100 in a savings account that pays an interest rate of 2.4% compounded monthly. If you leave your money for a year, how much will you have?

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  1. 18 December, 16:28
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    Each month the new total you be

    initial amount * 1.024

    Repeating the process for a year (=12 months) you get

    initial amount * 1.024^12

    Being initial amount = $100

    100*1.024^12 = $132.92

    After 1 year you will have $132.92
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