Find the balance in the account. $2,400 principal earning 2%, compounded annually, after 7 years $2,736.00 $2,756.85 $307,200.00 $17,136.00

Question

Mathematics

Royce Waters

31 March, 07:32

Find the balance in the account. $2,400 principal earning 2%, compounded annually, after 7 years $2,736.00 $2,756.85 $307,200.00 $17,136.00

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Answers (1)

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Rylan Avery · Answer 1

The future worth (F) of the current investment (P) that has an interest (i) that is compounded annually is calculated through,

F = P x (1 + i) ^n

where n is the number of compounding period. Substituting the given values,

F = ($2,400) x (1 + 0.02) ^7 = $2,756.85

Thus, the future worth is approximately $2,756.85. The answer is the second choice.