You will have $2542 in the account in year 7.
How much will you have in the account in year 7? Round your answer to the nearest dollar.
You will have $2542 in the account in year 7.
Calculation of Amount in the Account in Year 7
A is the final amount,
P is the principal (initial investment),
r is the interest rate,
t is the time in years.
In this case, the initial investment is $2300, the interest rate is 1.5% (or 0.015 as a decimal), and the time is 7 years.
Plugging these values into the formula: A = 2300(1 + 0.015 * 7) A = 2300(1 + 0.105) A = 2300(1.105) A = 2541.50
Rounding to the nearest dollar, you will have $2542 in the account in year 7.