Question

5. Amy deposited $7,000 in a bank account earning 3.5% interest, compounded

Answer 1

Answer:

Step-by-step explanation:

Given the following data;

Principal = $7,000

Interest = 3.5% = 3.5/100 = 0.035

To find the future value, we would use the compound interest formula;

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

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Substituting into the equation, we have;

$A = 7000(1 + \frac{0.035}{n})^{nt}$