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TheDumDum
 3 years ago
$25,000 is invested at 4% compounded annually for 7 years, find the current balance in the bank account based on the given conditions
TheDumDum
 3 years ago
$25,000 is invested at 4% compounded annually for 7 years, find the current balance in the bank account based on the given conditions

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zepdrix
 3 years ago
Best ResponseYou've already chosen the best response.0The formula for finding compound interest is as follows,\[\large A=P\left(1+\frac{r}{n}\right)^{nt}\] They gave us this information, ~our `principle amount` \(P\) is $25,000. ~the `rate of compounding` \(r\) is 4%, or as a decimal, 0.04. ~the `time period` \(t\) is 7 years. ~the `number of compoundings per period` \(n\) is 1 (since it's compounded anually). So we just plug these values in and solve for \(A\)! :)

zepdrix
 3 years ago
Best ResponseYou've already chosen the best response.0\[\large A=25000\left(1+\frac{0.04}{1}\right)^{1\times7}\]

zepdrix
 3 years ago
Best ResponseYou've already chosen the best response.0You'll want to use your calculator to simplify that down. Lemme know if it's too complicated :D
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