Answer
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A = 48,250.87
↓Steps Explained:↓
How much is 40000 worth after 4 years
using an annual interest rate of 4.8%
compounded annually?
Calculate Accumulated Balance
A = B(1 + i)n
where A = accumulated balance
B = opening balance
i = Annually interest rate
and n = number of periods
Plugging in our values
A = 48,250.87
A = 40000(1.048)4
A = 40000(1.206271676416)
How much interest was earned?
Interest Earned = Accum. Value - Start Balance
Plug in our values
Interest Earned = 48,250.87 - 0.00
Interest Earned = 48,250.87
48250.87
Final Answer
A = 48,250.87Take the Quiz
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