Solve the problem. Round your answer to the nearest cent.
-Tara invests $\$ 250$ in an account paying $8.7 \%$ compounded annually. How much is in the account after 7 years?
A) $\$ 448.28$
B) $\$ 449.64$
C) $\$ 152.25$
D) $\$ 448.80$

Question

Quizplus · Accepted Answer

The amount in the account after 7 years can be calculated using the formula for compound interest: $A = P(1 + r)^n$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $n$ is the number of years the money is invested for. Here, $P = \$250$, $r = 8.7\% = 0.087$, and $n = 7$. Plugging these values into the formula gives $A = 250(1 + 0.087)^7 \approx \$448.28$.

Solve the Problem $250\$ 250$250 In an Account Paying 8.7%8.7 \%8.7% Compounded Annually

Solve the Problem $\$ 250$ In an Account Paying $8.7 \%$ Compounded Annually