suppose you deposit 500 dollars into a bank with 4% interest compounded annually. the amount in the account…

suppose you deposit 500 dollars into a bank with 4% interest compounded annually. the amount in the account after t years is given by $a(t)=500(1.04)^t$ (in dollars). what is the amount in the account after 7 years? round to nearest hundredth.

suppose you deposit 500 dollars into a bank with 4% interest compounded annually. the amount in the account after t years is given by $a(t)=500(1.04)^t$ (in dollars). what is the amount in the account after 7 years? round to nearest hundredth.

Answer

Explanation:

Step1: Substitute t value

Substitute $t = 7$ into $A(t)=500(1.04)^t$. So we have $A(7)=500\times(1.04)^7$.

Step2: Calculate the power

Calculate $(1.04)^7$. Using a calculator, $(1.04)^7\approx1.315931779$.

Step3: Multiply by 500

Multiply the result by 500. $A(7)=500\times1.315931779 = 657.9658895$.

Step4: Round to hundredth

Round $657.9658895$ to the nearest hundredth. $A(7)\approx657.97$.

Answer:

$657.97$