Question

If you save $4,500 at an interest rate of 13 percent per year, how much will you have at the end of seven years? $8,290.96 $9,368.78 $10,586.72

Answer 1

Answer:  Last option is correct.

Step-by-step explanation:

Since we have given that

Principal amount =$4500

Rate of interest = 13%

Time =7 years

As we know "Compound Interest " formula:

$A=P(1+\frac{r}{100})^n$

where A represents Amount

P represents Principal

r represents rate of interest

n represents no. of years

So, we get,

$A=4500(1+\frac{13}{100})^7\\\\A=4500(1+0.13)^7\\\\A=4500(1.13)^7\\\\A=\ 10586.72$

Hence, Last option is correct.

Answer 2

4500 x 1.13^7 = $10,586.72