Luke puts $200 into his account to use for school expenses. The account earns 2% interest, compounded annually. How much will be

Question

3 years ago

15

in the account after 7 years?

2 answers:

Tcecarenko [31] · Answer 1 · 2022-10-02T16:51:01+03:00

7 0

Answer:

number of planning look foot equal to 200 in h8s account you should use compound formula ok

Zigmanuir [339] · Answer 2 · 2022-10-02T18:27:48+03:00

Answer: $230 will be in the account after 7 years.

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 200

r = 2% = 2/100 = 0.02

n = 1 because it is compounded once in a year.

t = 7 years

Therefore,.

A = 200(1+0.02/1)^1 × 7

A = 200(1.02)^7

A = $230