SOLUTION: You deposit $5000 into a account earning 7% interest compounded annually. How much will you have in the account in 20 years?

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Question 1176027: You deposit $5000 into a account earning 7% interest compounded annually. How much will you have in the account in 20 years?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal = $5000
r= annual rate = .07
n= periods per year = 1
t= years = 20
Plug and Play
A%28t%29+=+5000%281.07%29%5E%2820%29 = $19,348.42  (rounded to the nearest cent)

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