Question

The amount that results when $4000 is compounded at 6% annually over seven years

Answer 1

Total = Principal * (1 + .06)^7
Total = 4,000 * (1.06) ^ 7
Total = 4,000 * 1.503630259
Total = 6,014.52

Answer 2

The amount is $6014.52.

Explanation:

Given : $4000 is compounded at 6% annually over seven years?

To find : The amount?

Solution :

Apply compound interest formula,

`A=P(1+r)^t`

Where, A is the amount

P is the principal P=$4000

r is the rate of interest r=6%=0.06

t is the time t=7 years

Substitute the value in the formula,

`A=P(1+r)^t`

`A=4000(1+0.06)^7`

`A=4000(1.06)^7`

`A=4000* 1.503`

`A=6014.52`

Therefore, The amount is $6014.52.