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Martha Reed has been depositing $1,500 in her savings account every December since 1998. Her account earns 6 percent compounded annually. How much will she have in December of 2007? (Assume that a deposit is made in 2007. Make sure to count the years carefully.)

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A basic investment is emphasized.

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A "basic investment" is one where you start with an initial principal, invest it at an annually compounded rate of return, and add equal contributions every year.

In the provided reference there is detailed explanations on how to arrive with the formula. I'm repeating the information here in case you can't see the web page.

One thing we need to get straight from the beginning is the timing of the interest and contributions. We're going to assume that the balance of the account for any ...

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