Final answer:
The future value of $1,000 in four years at a 7% interest rate compounded annually is $1,310.80, calculated using the compound interest formula.
Step-by-step explanation:
The subject of this question is related to the concept of compound interest, which is a fundamental topic in mathematics. To calculate the future value of $1,000 at a 7% interest rate compounded annually for four years, we can use the formula for compound interest:
Future Value = Principal × (1 + Interest Rate)^Time
Where principal is $1,000, interest rate is 0.07 (7%), and time is 4 years.
Applying these values to the formula gives us:
Future Value = $1,000 × (1 + 0.07)^4 = $1,000 × (1.07)^4 = $1,000 × 1.3107961 = $1,310.80
Therefore, the future value of $1,000 after four years at a 7% interest rate compounded annually is $1,310.80.