Question

Tanvi opened a savings account and deposited $400.00 as principal. the account earns 13%
interest, compounded annually. what is the balance after 7 years?
p(1+)",
use the formula a = p 1 + where a is the balance (final amount), p is the principal
(starting amount), r is the interest rate expressed
as a decimal, n is the number of times per
year that the interest is compounded, and t is the time in years.
round your answer to the nearest cent.

Answer 1

The amount of the money after 7 years with a rate of 13% with an initial amount of $400 will be $ 941.04.

What is compound interest?

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

Tanvi opened a savings account and deposited $400.00 as principal.

The account earns 13% interest, compounded annually.

Then the balance after 7 years will be

We know the compound interest formula.

A = P (1 + r)ⁿ

We have

P = $ 400

r = 13%

n = 7 years

Then we have

A = 400 x (1 + 0.13)⁷

A = 400 x 1.13⁷

A = 400 x 2.3526

A = $ 941.04

More about the compound interest link is given below.

https://brainly.com/question/25857212

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