Question

7,600 dollars is placed in a savings account with an annual interest rate of 6%. if no money is added or removed from the account, which equation represents how much will be in the account after 7 years?

answer attempt 1 out of 2

\\( m = 7,000(1 + 0.06)(1 + 0.06) \\)
\\( m = 7,600(1 - 0.06)^7 \\)
\\( m = 7,600(1 + 0.06)^7 \\)
\\( m = 7,600(0.06)^7 \\)

Explanation:

Step1: Identify compound interest formula

The formula for compound interest (annual compounding) is \( A = P(1 + r)^t \), where \( P \) is principal, \( r \) is annual rate, \( t \) is time in years.

Step2: Substitute values

Here, \( P = 7600 \), \( r = 0.06 \), \( t = 7 \). So the equation is \( M = 7600(1 + 0.06)^7 \).

Answer:

M = 7,600(1 + 0.06)^7