$1,000 deposited in a bank that earns 7% per year will become approximately $7,600 in 30 years.

Question

Quizplus · Accepted Answer

This statement is true. The amount can be calculated using the formula A = P(1+r/n)^(nt), where A is the amount after time t, P is the principal (initial amount) invested, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years. Plugging in the given values, we get A = 1000(1+0.07/1)^(1*30) = $7,613.91 (rounded to the nearest cent).

$1,000 Deposited in a Bank That Earns 7% Per Year