Tracy puts 400.00 into an account to use for school expenses. The account earns 7% interest, compounded annually. How much will be in the account after 7 years?

Solution

Solution

Amount : 642.31

Solution steps

Translate the problem into an equation:

A = 400 (1 + \frac{0.07}{1})^{1 \cdot 7}

400 (1 + \frac{0.07}{1})^{1 \cdot 7} = 642.31259 \dots

Round to the nearest hundredth:

642.31

Amount : 642.31

Popular Examples

The radius of a circle is 10 cm. Find its area A shoe was priced at 75 and is sold now at 10% off. What is the price of the shoe now If a fair coin is tossed 6 times, what is the probability, to the nearest thousandth, of getting exactly 4 heads?A rectangular playground has a length of 40 feet and a perimeter of 120 feet. What is the width of the playground?Lucy invested 30, 000 in an account paying an interest rate of 6.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, would be in the account after 9 years?