MATH SOLVE

5 months ago

Q:
# Find the balance in the account. $2,400 principal earning 2%, compounded annually, after 7 years $307,200.00 $17,136.00 $2,736.00 $2,756.85

Accepted Solution

A:

Answer:[tex]2,756.85[/tex] Step-by-step explanation:we know that The compound interest formula is equal to [tex]A=P(1+\frac{r}{n})^{nt}[/tex] where A is the Final Investment Value P is the Principal amount of money to be invested r is the rate of interest in decimal
t is Number of Time Periods n is the number of times interest is compounded per year
in this problem we have [tex]t=7\ years\\ P=\$2,400\\ r=2\%=2/100=0.02\\n=1[/tex] substitute in the formula above [tex]A=2,400(1+\frac{0.02}{1})^{1*7}[/tex] [tex]A=2,400(1.02)^{7}[/tex] [tex]A=2,756.85[/tex]