Answer:
A. $4594.74
Step-by-step explanation:
To figure this out, use the equation A = P(1 + r/n)^nt. (A is the total principal (P) + interest; r is the decimal form of the annual rate (R), n is the compound, and t is the time in years)
<em>Substitutions added</em>
A = 4000((1 + 0.02/1)^(1(7))
<em>Step 1: We can go on ahead and cancel both the division and multiplication by 1 here.</em>
A = 4000((1 + 0.02)^7)
<em>Step 2: Add 0.02 to 1.</em>
A = 4000(1.02 ^ 7)
<em>Step 3: Find 1.02 to the seventh power. (I rounded it for convenience)</em>
A = 4000(1.14868)
<em>Step 4: Multiply 4000 by 1.14868</em>
A = 4594.74267
<em>Step 5: This is important! Round that answer to the nearest cent.</em>
A = $4594.74, which is A.
