Question

1. An investor deposits $1000 in an account that promises an annual interest rate of 5%,

compounded at the end of each year. How much will be in the account after seven years?

Answer 1

$1,407.10

Explanation:

1000(1.05)^7 = 1.05^7 ≈ 1.40710 * 1000 = $1,407.10