167k views
1 vote
What is the balance after 7 years if you deposit $2800 in an account that pays 4% interest compounded yearly ?

User Ganeshk
by
6.6k points

1 Answer

1 vote

Final Answer:

The balance after 7 years would be approximately $3684.61.

Step-by-step explanation:

To calculate the balance after 7 years, we can use the formula for compound interest:

A = P(1 + r)^n

where:

A is the final balance

P is the principal amount ($2800)

r is the annual interest rate (4%)

n is the number of years (7)

Substituting the values:

A = $2800(1 + 0.04)^7

A ≈ $3684.61

Therefore, the balance in the account after 7 years would be approximately $3684.61.

User Krivvenz
by
5.4k points