Question

Esha is seeking to invest for college. She selects an account with a compound interest rate of 2% per year. If she initially deposits $7,000, then how much will her investment be worth at the end of 5 years?

Answer 1

$7700

Explanation:

Given data

Rate= 2%

Principal= $7000

Time= 5 years

The simple interest expression is

A=P(1+rt)

substitute

A=7000(1+0.02*5)

A=7000(1+0.1)

A=7000*1.1

A=7700

Hence the amount is $7700