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At the beginning of each year Jane puts $2,000 in

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At the beginning of each year Jane puts $2,000 in [#permalink] New post 30 Jul 2017, 08:24
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At the beginning of each year Jane puts $2,000 in an account that earns 6 % interest, compounded annually. To the nearest dollar, how much money will Jane have in the account at the end of 4 years if she makes no withdrawals?


Round your answer to the nearest whole dollar: $

enter your value

[Reveal] Spoiler:
$ 9,274

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Re: At the beginning of each year Jane puts $2,000 in [#permalink] New post 28 Sep 2017, 06:31
Given the formula for the compound interest rate A=P(1+\frac{r}{n})^{nt}, where P is the sum invested, A is the amount after interests, r is the interest rate and n is the number of times the interests are compounded in a year, the solution is pretty straightforward.

The interests are compounded once a year so that the formula reduces to A=P(1+0.06)^t. Then, we just have to compute the amount every year, remembering of adding 2000$ at the beginning of every new year.

Thus, the first year we will have 2000(1+0.06)^1=2120
The second year we will have (2120+2000)*(1+0.06)^1=4367.2
And so on for other two years until we reach our answer, $ 9,274
Re: At the beginning of each year Jane puts $2,000 in   [#permalink] 28 Sep 2017, 06:31
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At the beginning of each year Jane puts $2,000 in

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