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An investment of $4000 earns 2% interest compounded annually. What will be the value of the investment in 7 years?

Sagot :

tamiyamcclain596
$4594

a=p(1+r)^t
a=final number
p=principal balance (initial)**without interest**
r=interest rate
t=the amount of time
p=$4000
t= 7yrs
r=2%=0.02
we need to turn 2% into a decimal, to do that you divide 2 by 100 which is 0.02
now we rewrite the equation-
a=4000(1+0.02)^7
a=4000*1.1486
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