Question

Logan places $300 in an account that earns 7% annual interest. What is the value of the initial amount?

Answer 1

Amount after a year would be $321

Step-by-step explanation:

Given:

Principal, P = $300

Rate of Interest, r = 7%

Time, t = 1 year

Amount, A = ?

We know:

`Amount = P(1 + (r)/(100) )^t`

Substituting the value we get:

`A = 300(1+(7)/(100) )^1\\\\A = 300 X 1.07\\\\A = 321`

Therefore, amount after a year would be $321