Question

$800 principal earning 7%, compounded annually, after 4 years

Answer 1

Answer:

After 4 years , $800 principalat rate of 7% we have amount $ 1048.64

Step-by-step explanation:

    Given : $800 principal earning 7% compounded annually, after 4 years.

We have to find the amount .

Using compound interest formula,

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

Where , A is amount

P is principal amount

r is intrest rate

t is time period.

Substitute, P = 800 , t= 4 , r = 7%

We get,

$A=800(1+\frac{7}{100})^4$

Simplify, we get,

A = 1048.64

Thus, after 4 years we have $ 1048.64

Answer 2

The formula for compound interest is: A=P(1+r/n)^nt
A = $ 1,048.64