Question

2. If you deposit $820 into a savings account that makes 4% yearly interest, how much money willbe in the account in 7 years? Round answer to 2 decimal places. Show your work and how youentered it into the formula.hint : y = all + r)"

Answer 1

$1079.06

Explanation:

The formula for finding the amount of money at the end of 7 years is

`y=a(1+r)^t`

where

y = final amount

a = principle amount (the amount of money you started with)

r = interest rate as a decimal

t = number of years.

Now, in our case the above variables take the following values.

a = $820

r = 4% /100 = 0.04

t = 7 years

and putting these values into the above formula gives

`y=820(1+0.04)^7`
`y=1079.06`

Hence, the amount of money in the account after 7 years will be $1079.06.