Russell puts 7,486.00 into an account to use for school expenses. The account earns 5.13% interest, compounded annually. How much will be in the account after 7 years?

Solution

Russell puts 7, 486.00 into an account to use for school expenses. The account earns 5.13% interest, compounded annually. How much will be in the account after 7 years?

Solution

Amount : 10625.18

Solution steps

Translate the problem into an equation:

A = 7486 (1 + \frac{0.0513}{1})^{1 \cdot 7}

7486 (1 + \frac{0.0513}{1})^{1 \cdot 7} = 10625.18434 \dots

Round to the nearest hundredth:

10625.18

Amount : 10625.18

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