Question

$800 principal earning 7%, compounded annually, after 4 years

Answer 1

$1050

Explanation:

formula for compound interest method:

A = P ( 1 + r/100)^n

A is actual amount

r is the rate of interest

P is the principle

n is the number of years

A = 800 (1 * 7/100)^4

= 1048.637

to 3sf = $1050