Answer:the balance after 7 years is $3216
Step-by-step explanation:
A) Initial amount deposited into the account is $2800 This means that the principal,
P = 2800
It was compounded yearly. This means that it was compounded once in a year. So
n = 1
The rate at which the principal was compounded is 4%. So
r = 4/100 = 0.04
It was compounded for 7 years. So
t = 7
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 2800(1 + 0.04/2)^ 1× 7
A = 2800(1 + 0.02)^7
A = 2800(1.02)^7
A = $3216
