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16-03-2017
Mathematics

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Suppose Charlie places $7000 in an account that pays 12% interest compounded each year. Assume that no withdrawals are made from the account.

amount at the end of one year
amount at the end of two years

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16-03-2017

7000/.12=840
840x2=1680

At the end of year one you will have $840 and $7840 total
At the end of year two you will have $1680 and $8680 total

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