Sandeep puts 7,000.00 into an account to use for school expenses. The account earns 4% interest, compounded annually. How much will be in the account after 5 years?

Solution

Sandeep puts 7, 000.00 into an account to use for school expenses. The account earns 4% interest, compounded annually. How much will be in the account after 5 years?

Solution

Amount : 8516.57

Solution steps

Translate the problem into an equation:

A = 7000 (1 + \frac{0.04}{1})^{1 \cdot 5}

7000 (1 + \frac{0.04}{1})^{1 \cdot 5} = 8516.57031 \dots

Round to the nearest hundredth:

8516.57

Amount : 8516.57

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