Question

Caleb invested $1400 in an account that pays 4% interest compounded annually.
Assuming no deposits or withdrawals are made, find how much money Caleb would
have in the account 7 years after his initial investment. Round to the nearest tenth (if
necessary

Answer 1

Answer:

$1842.30

Step-by-step explanation:

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 4/100

r = 0.04 rate per year,

Then solve the equation for A

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

A = 1,400.00(1 + 0.04/1)^(1)^(7)

A = 1,400.00(1 + 0.04)^(7)

A = $1,842.30