Manuel opened a savings account and deposited 1,000.00 as principal. The account earns 7% interest, compounded annually. What is the balance after 9 years?

Solution

Manuel opened a savings account and deposited 1, 000.00 as principal. The account earns 7% interest, compounded annually. What is the balance after 9 years?

Solution

Amount : 1838.46

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.07}{1})^{1 \cdot 9}

1000 (1 + \frac{0.07}{1})^{1 \cdot 9} = 1838.45921 \dots

Round to the nearest hundredth:

1838.46

Amount : 1838.46

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