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23 February, 07:33

Claudia invested $12,000 at an interest rate of 4.5% compounded monthly. In the formula A=p (1+r/n) ^nt, A is the worth of an account after t years, n is the number of times that interest is compounded, P is the initial deposit, and r is the interest rate. Approximately how much money will be in Claudia's account after 7 years?

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  1. 23 February, 08:01
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    Answer: $16,433.42

    Step-by-step explanation:

    Hi, to answer this question we have to apply the formula given:

    A=p (1+r/n) ^nt,

    r must be in decimal form (percentage divided by 100) n is equal to 12 (it compounds 12 times per year)

    Replacing with the values given:

    A = 12,000 (1 + 0.045/12) ^12 (7)

    Solving:

    A = 12,000 (1 + 0.045/12) ^12 (7)

    A = 12,000 (1.00375) ^84

    A = $16,433.42
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