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Exercises

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Exercise 6

Lizette decides that starting in January she will deposit $50 into her bank account at the start of each month. Her account earns 0.25% interest per month. Interest is calculated at the end of each month. Truncate answers to two decimal places.

(a) In the middle of February, how much money is in Lizette's account?

(b) In the middle of March, how much money is in Lizette's account?

(c) In the middle of the nth month (where January is the 1st month, February is the 2nd month, etc.), how much money is in Lizette's account? Give your answer in closed form.

(d) In the middle of December, how much money is in Lizette's account?

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