Question

You invest 23,400 annual interest rate of 4% compounded annually for seven years what is the balance of the account at the end of that time

Answer 1

Answer: 30792.80

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Work Shown:

We deposit P = 23400 dollars for t = 7 years, which is compounded n = 1 times per year at an interest rate of r = 4% = 0.04 (we'll use the decimal form of the interest rate)

So this means...

A = P*(1+r/n)^(n*t)

A = 23400*(1+0.04/1)^(1*7)

A = 23400*(1+0.04)^(7)

A = 23400*(1.04)^(7)

A = 23400*1.31593177923584

A = 30792.8036341187

A = 30792.80