Answer: $2,277.5
Explanation:
Hi, to answer this question we have to apply the compounded interest formula:
A = p (1+ r )^t
A = total amount (principal plus returns)
P = principal invest
r =interest rate (decimal form)
t = time (in this case years)
Replacing with the values given:
A = 1295 (1 + 8.4/100)^7
A = 1295 ( 1+ 0.084)^7
A = 1295 ( 1.084)^7
A = 2,277.5