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bekas [8.4K]
4 years ago
5

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

Mathematics
2 answers:
alexgriva [62]4 years ago
8 0
Formula for amount, A, in Compound Interest:

A = P(1 + r)ⁿ

Where P = Principal = $800,  r = rate per year = 7% = 0.07, n = number of years = 4

A =  P(1 + r)ⁿ

A =  800(1 + 0.07)⁴

A = 800(1.07)⁴             Use your calculator

A ≈   1048.6368

A ≈ $1048.64

I hope this helped.
SVETLANKA909090 [29]4 years ago
4 0
The amount A after 4 years is given by:
A=800(1.07)^{4}=1048.64
The answer is $1,048.64 rounded up to the nearest cent.
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