Question

T.J. invests $8,100 in an account

that earns 7.2% compound interest.
If T.J. does not make any additional
deposits or withdrawals, how much
interest will he earn after 7 years?

Answer 1

$13,177.97

Explanation:

Compound Interest Formula

`A=P(1+(r)/(n) )^(nt)`

A = final amount

P = initial investment

r = interest rate

n = number of times the rate is applied during a time period

t = number of times the time period has elapsed

`A=8100(1+(.072)/(1) )^((1)(7)) \\A=8100(1.072)^(7)\\ A=8100*(1.626909883)\\A=13177.97006`