Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Question
![### Problem Statement
You deposit $400 in an account earning 7% interest compounded annually. How much will you have in the account in 10 years?
#### Answer Box
Enter your answer in the box provided below.
\[ \Box \]
#### Resources
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### Explanation
To solve this problem, you can use the formula for compound interest:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount (the initial amount of money before interest), which is $400.
- \( r \) is the annual interest rate (decimal), so 7% becomes 0.07.
- \( n \) is the number of times that interest is compounded per year. In this case, it’s compounded annually, so \( n = 1 \).
- \( t \) is the time the money is invested for, which is 10 years.
Substitute the values into the formula to calculate how much you will have after 10 years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48574c8c-8b8f-49cc-8aac-f3f504b7bee4%2F862a724c-9ea5-4f95-b1a8-689641b1f721%2Frtrpai.jpeg&w=3840&q=75)
Transcribed Image Text:### Problem Statement
You deposit $400 in an account earning 7% interest compounded annually. How much will you have in the account in 10 years?
#### Answer Box
Enter your answer in the box provided below.
\[ \Box \]
#### Resources
For additional help, refer to the following videos:
- [Video 1](#)
- [Video 2](#)
To submit your answer, click the button below:
\[ \text{Submit Question} \]
---
### Explanation
To solve this problem, you can use the formula for compound interest:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount (the initial amount of money before interest), which is $400.
- \( r \) is the annual interest rate (decimal), so 7% becomes 0.07.
- \( n \) is the number of times that interest is compounded per year. In this case, it’s compounded annually, so \( n = 1 \).
- \( t \) is the time the money is invested for, which is 10 years.
Substitute the values into the formula to calculate how much you will have after 10 years.
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