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24 votes
24 votes
Barbara puts $500.00 into an account to use for school expenses. The account earns 14% interest, compounded annually. How much will be in the account after 7 years?

Use the formula A = P (1 + r/n) nt where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.

Round your answer to the nearest cent.

User Hansen W
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1 Answer

16 votes
16 votes

Answer:

the total of 14% of $500.00 is $70

so for 7yrs $70 X 7=$490

User Nathan Phetteplace
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