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5 September, 21:40

An investment account earns 4% per year compounded annually. If the initial investment was $4,000.00, how much is in the account after 3 years? Round your answer to the nearest dollar.

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  1. 5 September, 21:59
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    I believe the answer is 4960, because 4% of 4000 is 160, next year is 8%, 320. Next year, 12%, 480. 160 + 320 + 480 = 960
  2. 5 September, 23:00
    0
    4% would equal 0.04

    $4,000 x 0.04 = $4,160

    $4,160 x 0.04 = $4,326.40

    $4,326.40 x 0.04 = $4,499.456

    The answer would be rounded to $4,499
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