Question

Tanvi puts $100.00 into an account to use for school expenses the account earns 7%interest compounded annually how much will be in the account after 7 years

Answer 1

We have the following:

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

Where A(t) is the amount earned/owed after t years

P is the principal amount

r is the interest rate in decimal for,

`\begin{gathered} A(7)=100\cdot(1+0.07)^7 \\ A(7)=100\cdot(1.07)^7 \\ A(7)=160.578 \end{gathered}`

That is, after that time it has a total of $160.578