Question

D.J. wanted to save money in a savings account paying 4% interest. He started with $600.00, and is leaving it in the account for 7 years. How much money will he have after 7 years? Use the exponential growth formula A=P(1+r)t . Do not round your answer until your final amount, then round your answer to the nearest hundredth.

Answer 1

D.J. will have $767.07 after 7 years in the savings account.

Step-by-step explanation:

To calculate the amount of money D.J. will have after 7 years in a savings account with a 4% interest rate, we can use the formula for compound interest: A = P(1+r)^t.

In this case, P (the principal) is $600.00, r (the interest rate) is 4% or 0.04, and t (the time in years) is 7. Plugging these values into the formula, we have:

A = 600(1+0.04)^7

Simplifying the expression inside the parentheses, we get:

A = 600(1.04)^7

Calculating the expression, we find that A is approximately $767.07. Rounded to the nearest hundredth, D.J. will have $767.07 after 7 years in the savings account.