Question

find the balance in the account. $2,400 principal earning 2%, compounded annually, after 7 years $2,736.00 $2,756.85 $307,200.00 $17,136.00

Answer 1

The future worth (F) of the current investment (P) that has an interest (i) that is compounded annually is calculated through,
F = P x (1 + i)^n
where n is the number of compounding period. Substituting the given values,
F = ($2,400) x ( 1+ 0.02)^7 = $2,756.85
Thus, the future worth is approximately $2,756.85. The answer is the second choice.