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]