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musickatia [10]
3 years ago
9

Find the balance in the account. $800 principal earning 7%, compounded annually, after 4 years $1,048.64 $1,024.00 $1,920,800.00

$3,424.00
Mathematics
2 answers:
Scorpion4ik [409]3 years ago
6 0

Your answer would be 1,048.64

Masteriza [31]3 years ago
3 0

Answer:

After 4 years, the balance in the account will be of $1,048.64.

Step-by-step explanation:

Initial amount: $800

Year 1: $800 + (800 x 7 / 100) = $800 + $56 = $856

Year 2: $856 + (856 x 7 / 100) = $856 + $59.92 = $915.92

Year 3: $915.92 + (915.92 x 7 / 100) = $915.92 + $64.11 = $980.04

Year 4: $980.04 + (980.04 x 7 / 100) = $980.04 + $68.60 = $1,048.64

As we can see in this table, compounded annually, the interest rate of 7% over an initial amount of $800 will reach $1,048.64 in four years.

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