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Alyssa opened a retirement account with 7.25% apr in the year 2000. her initial deposit was $13,500. how much will the account be worth in 2025 if interest compounds monthly? how much more would she make if interest compounded continuously?

Respuesta :

samuelonum1

The total amount accrued, principal plus interest, with compound interest on a principal of $13,500.00 is $19,377.24.

Compound Interest

Given Data

  • Principal P = $13500
  • Rate r = 7.25%
  • Time = 5 years

A = P + I where

P (principal) = $13,500.00

I (interest) = $5,877.24

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 7.25/100

r = 0.0725 rate per year,

Then solve the equation for A

A = P(1 + r/n)^nt

A = 13,500.00(1 + 0.0725/12)^(12)(5)

A = 13,500.00(1 + 0.0060416666666667)^(60)

A = $19,377.24

Learn more about compound interest here:

https://brainly.com/question/24924853

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