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Explain the interest earned and the accumulated amount

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Reference no: EM133134212

Find basis assumptions 'a' and 'b', the interest earned and the accumulated amount in an account at the end of 7 years when equal annual deposits of $1250 made each year where the account pays 9% per year compounded annually.

- Assumption a = the first deposit happens one year from now

- Assumption b = the first of the 7 deposits happen now

Reference no: EM133134212

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