Question

Matthew deposits $400 into an account that earns 7% interest compounded quarterly. What is the balance in his account after 10 years? (Round to the nearest dollar)​

Answer 1

The photo will show you

Answer 2

$787

Explanation:

In terms of interest

To find the multiplier using '7% more' continues as follows

100% + 7% = 107%

107/100 = 1.07 (multiplier)

Add the ten years as a power to the multiplier

1.07^10

And multiply this by $400

400 x 1.07^10 = 786.860542916

To the nearest dollar = $787