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Parents of a newborn child allocated $20,000 of their savings to an in
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30 Jun 2021, 06:01
30 Jun 2021, 06:01
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Parents of a newborn child allocated $20,000 of their savings to an investment that earns 0.75% annual interest, compounded monthly. If there are no other transactions in the investment account, what is the amount of money (to the nearest cent) in the account 1 month after the account is opened?
Show: :: OA
$ 20,012.5
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Re: Parents of a newborn child allocated $20,000 of their savings to an in
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30 Jun 2021, 06:24
30 Jun 2021, 06:24
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Carcass wrote:
Parents of a newborn child allocated $20,000 of their savings to an investment that earns 0.75% annual interest, compounded monthly. If there are no other transactions in the investment account, what is the amount of money (to the nearest cent) in the account 1 month after the account is opened?
Show: :: OA
$ 20,012.5
P = $20000
R (per annum) = 0.75
T = 1 month = \(\frac{1}{12}\) year
S.I of 1 month \(= \frac{(20000)(0.75)}{100}(\frac{1}{12})\)
S.I = $12.5
Amount = P + S.I = 20000 + 12.5 = $20012.5
gmatclubot
Re: Parents of a newborn child allocated $20,000 of their savings to an in [#permalink]
30 Jun 2021, 06:24
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