Complete question :
Find the balance in the amount after the given period. 5000 principal earning 7% compounded annually for 7 years
Answer:
8,028.91
Step-by-step explanation:
Given :
Principal, P = 5000
Rate, r = 7% = 0.07
Period, t = 7 years
Using the compound interest formula :
A = P(1 + r/n)^nt
A = final amount ; n = number of compounding times per period
A = 5000(1 + 0.07/1)^(1*7)
A = 5000(1 + 0.07)^7
A = 5000(1.07)^7
A = 5000 * 1.60578147647843
A = 8028.90738239215
Amount saved = 8,028.91
