Question 16

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An initial deposit of $800 is put into an account that earns 5% interest, compounded annually. Each year, an additional deposit of $800 is added to the account. Assuming no withdrawals or other deposits are made and that the interest rate is fixed, the balance of the account (rounded to the nearest dollar) after the seventh deposit is __________.

• $6,004

• $5,628

• $5,624

• $6,514