Solve the problem.
-Luis invests $1000 into an account earning interest at a rate of 7% compounded annually. Find the amount in the account at the end of 10 years.
A)$1967.15
B)$1838.46
C)$2104.85
D)$967.15

Question

Quizplus · Accepted Answer

The amount in the account can be found using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($1000), r is the annual interest rate (7% or 0.07), n is the number of times that interest is compounded per year (1 for annually), and t is the time the money is invested for in years (10). Plugging in the values: A = 1000(1 + 0.07/1)^(1*10) = 1000(1.07)^10 ≈ $1967.15.

Solve the Problem. -Luis Invests $1000 into an Account Earning Interest at a Interest