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Find the balance of the account earning interest compound annually.
$7000 at 4% for 2 years

User Ncraley
by
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1 Answer

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Answer:

$7571.20

Explanation:

Each year, the balance is multiplied by 1+4% = 1.04. After 2 years, the balance is ...

$7000 × 1.04 × 1.04 = $7571.20

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Additional comment

The repeated multiplication is usually indicated with an exponent:

$7000×1.04²

User MBeckius
by
4.4k points