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Compound Interest, SMB-002

Samanda opens a bank account and deposits $5000 into it. Interest is paid at 4% per annum, compounding annually.

Assuming no further deposits or withdrawals are made, what will be the balance in the account at the end of three years?   (2 marks)

--- 3 WORK AREA LINES (style=lined) ---

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`$5624.32`

Show Worked Solution
`FV` `= PV(1 + r)^n`
  `= 5000(1 + 0.05)^3`
  `= $5624.32`

Filed Under: Earning and Spending Money Tagged With: num-title-ct-coreb, smc-4334-10-Find FV

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