If $8,500 is deposited in a compound interest account paying 3.9% interest annually, how much will be in the account after 12 years? round to the nearest cent.
what is 8500(1.039)^12 ?
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8500(1.039)^12=
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To calculate the future value of the compound interest account after 12 years, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A is the future value of the account
P is the principal amount (initial deposit)
r is the annual interest rate (expressed as a decimal)
n is the number of times interest is compounded per year
t is the number of years
In this case:
P = $8,500
r = 3.9% = 0.039 (decimal form)
n = 1 (interest is compounded annually)
t = 12 years
Plugging these values into the formula:
A = 8500(1 + 0.039/1)^(1 * 12)
A = 8500(1 + 0.039)^12
A = 8500(1.039)^12
A ≈ 8500(1.548242)
A ≈ $13,156.05
Therefore, after 12 years, the account will have approximately $13,156.05 when rounded to the nearest cent.