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Suppose you deposit $600 in a savings account. The interest rate is 4% per year. Find the principal balance in the account after six years

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P = Po(1+r)^n.

Po = $600.

r = 4%/100% = 0.04 = APR expressed as a decimal.

n = 1Comp./yr * 6yrs = 6 Compounding
periods.

Plug the above values in the given Eq
and get:

P = $759.19

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