Okay. The formula for compound interest is P(1 + r)^t, with P = principal, r = percentage rate, and t = time in years. 4.8% is 0.048 in decimal form. We add 1 to that number to get 1.048. Because the amount of time compounded is 7 years, we raise 1.048 to the 7th power. 1.048^7 is 1.388445952. Do not delete this number from your calculator. Now, multiply that number by 12,000 to get 16,661.35142 or 16,661.35 when rounded to the nearest hundredth. There. The value after seven years is $16,661.35.
