If $1,000 is placed in an account earning 8% annually,the balance at the end of seven years will be
A)$1,080.
B)$1,560.
C)$2,000.
D)$1,714.

Question

Quizplus · Accepted Answer

We can solve this problem using the formula for compound interest: $A=P(1+r)^t$, where $A$ is the ending balance, $P$ is the initial deposit, $r$ is the annual interest rate as a decimal, and $t$ is the number of years. Plugging in the given values, we get $A=1000(1+0.08)^7 \approx 1714.46$. Rounded to the nearest cent, the balance at the end of seven years is $1714.46$, which corresponds to choice D.

If $1,000 Is Placed in an Account Earning 8% Annually,the