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29 May, 12:49

A saving account accrues interest at a rate of 3.0% yearly. If someone opens an account with 2,500 how much money would the account have after 5 years?

A. 2,575.00

B. 2,813.77

C. 2,898.19

D. 2,985.13

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Answers (1)
  1. 29 May, 15:04
    0
    The future worth (F) of the current investment (P) with interest i is calculated through the equation,

    F = P x (1 + i) ^n

    Substituting the known values to the given equation,

    F + (2500) x (1 + 0.03) ^5 = 2898.19

    Thus, the account would have approximately 2898.19.
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