Scott opened a savings account and deposited 300.00 as principal. The account earns 9% interest, compounded annually. What is the balance after 7 years?

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Solution

Solution

Amount : 548.41

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.09}{1})^{1 \cdot 7}

300 (1 + \frac{0.09}{1})^{1 \cdot 7} = 548.41173 \dots

Round to the nearest hundredth:

548.41

Amount : 548.41

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