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A retirement account is opened with an initial deposit of $8,500 and earns 8.12%
Chapter 6, Problem 5(choose chapter or problem)
QUESTION:
A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20 years?
Questions & Answers
QUESTION:
A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20 years?
ANSWER:Problem 5
A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20 years?
Step by Step Solution
Step 1 of 3
Given,
P - principal starting amount=$8500
T-time measured in years=20
r-annual percentage rate=0.0812