Nick puts 1,000.00 into an account to use for school expenses. The account earns 8% interest, compounded annually. How much will be in the account after 7 years?

Solution

Nick puts 1, 000.00 into an account to use for school expenses. The account earns 8% interest, compounded annually. How much will be in the account after 7 years?

Solution

Amount : 1713.82

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.08}{1})^{1 \cdot 7}

1000 (1 + \frac{0.08}{1})^{1 \cdot 7} = 1713.82426 \dots

Round to the nearest hundredth:

1713.82

Amount : 1713.82

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