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Billy Bob has $1000. How much would he have after 12 years if he leaves it...

Billy Bob has $1000. How much would he have after 12 years if he leaves it invested at 10.7% with annual compounding. (Answer in $s to the nearest cent, i.e. xxxx.xx with no $ sign needed.)

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Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$1000*(1.107)^12

=$1000*3.386658848

=3386.66(Approx).

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