Question

A bank account yields 7 percent interest, compounded annually. If you deposit $1,000 in the account, what will the account balance be after 5 years?

A. $1402.55
B. $1070.00
C. $1700.00
D. $1350.00

Answer 1

Hi there
The formula is
A=p (1+r)^t
A future value?
P present value 1000
R interest rate 0.07
T time 5 years
So
A=1,000×(1+0.07)^(5)
A=1,402.55

It's a

Hope it helps