Mathematics, 20.07.2020 14:01 muffin261
At the beginning of year 1, Josie invests $400 at an annual compound interest rate of 5%. She makes no deposits to or withdrawals from the account. Which explicit formula can be used to find the account's balance at the beginning of year 3?
A. A(3) = 400 • (1 + 0.05)3 – 1
B. A(3) = 400 + (3 – 1)(0.05 • 400)
C. A(3) = 400 + (0.05 • 400)3 – 1
D. A(3) = 400 • (1 + 0.05)3
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