Question

Find the balance in the account. $800 principal earning 7%, compounded annually, after 4 years

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 800\\ r=rate\to 7\%\to \frac{7}{100}\dotfill &0.07\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &4 \end{cases} \\\\\\ A=800\left(1+\frac{0.07}{1}\right)^{1\cdot 4}\implies A=800(1.07)^4\implies A = 1048.636808$

Answer 2

the answer is $1048.63 hope this helps