An investor puts $800 in an account that pays 7 % interest, compounded annually. Find the amount in the account after 4 years.

Answer: the amount in the account after 4 years is $1049

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 800

r = 7% = 7/100 = 0.07

n = 1 because it was compounded once in a year.

t = 4 years

Therefore,

A = 800 (1+0.07/1) ^1 * 4

A = 800 (1+0.07) ^4

A = 800 (1.07) ^4

A = 1049