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7,000 dollars is placed in a savings account with an annual interest rate of 3%. If no money is added or removed from the account, which equation represents how much will be in the account after 7 years?

Respuesta :

Answer:

See below

Step-by-step explanation:

Interest   3%   in decimal form is  .03

  interest in ONE year    7000 * .03

         interest in SEVEN years   7000 * .07 * 7

           this is added to the original deposit of 7000

              to become   7000 + 7000 * .03 * 7

                                        or  7000 ( 1 + .03*7 )

                                              or   7000 ( 1.21 ) = $ 8470

IF the interest is compounded

   the money in the account will be    7000 ( 1+.03)^7  

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