Question

How much money will be in an account with an annual interest rate of 7.5% compounded annually, if $5300 was deposited 7 years ago? Be sure to write your answer as money.​

Answer 1

A=5300(1+0.075/1)^1•7

A=5300•1075^7

A=5300•1.659049

A=8792.96

*They will have $8792.96 in 7 years

Answer 2

Explanation:

To find the amount of money in the account after 7 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where A is the final amount in the account, P is the initial deposit (5300), r is the annual interest rate (7.5%), n is the number of times the interest is compounded per year (1, since the interest is compounded annually), and t is the number of years the money is invested (7).

Plugging these values into the formula, we get:

A = 5300(1 + 0.075/1)^(1*7)

= 5300(1.075)^7

= $7953.33

So, the amount of money in the account after 7 years would be $7953.33.