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When you are born, your parents deposited $500 into a simple interest account that earns 2.5% annually. How much money would be in the
Question
When you are born, your parents deposited $500 into a simple interest account that
earns 2.5% annually. How much money would be in the account, for you, when you
turn 30 years old?
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Mathematics
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2021-07-19T04:35:42+00:00
2021-07-19T04:35:42+00:00 1 Answers
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Answer:
$875
Step-by-step explanation:
The account pays simple interest, so the formula for the balance is …
A = P(1 +rt)
A = $500(1 +0.025×30) = $500(1.75) = $875
There will be $875 in the account at age 30.