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22 votes
22 votes
5000 principal earning 4% compounded annually, 7 years

User Chris Camacho
by
2.9k points

1 Answer

14 votes
14 votes

Answer:

Explanation:

Basically, you want to know interest. I = prt is the formula. 'I' will be left blank b/c that's unknown. P is principal, 5000. R is rate, 4%, or 0.04 when turned into a decimal. T is time, 7 years. So now when using the formula, it will all become I = 5000(0.04)(7). What that means is you first multiply 5,000 by 0.04, getting 200. Then when you multiply 200 by 7, it's 1,400, which will leave you with I = 1,400. Interest is 1,400.

User HiQ CJ
by
2.4k points
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