Question

Determine amount of investment if $400 is invested at a annual interest rate of 7.25% for 7 Years round to nearest penny. I'm going to post my formula someone correct me if wrong please?

Answer 1

A=p(1+i)^n
A=400(1+0.0725)^7=652.89

Answer 2

The answer is $682.80

Explanation:

P = $400

rate = 7.25 or 0.0725

time = 7 years

n = 1

Compound interest formula is :
`P(1+(r)/(n))^(nt)`

Here n = 1

So, we will simply take
`P(1+r)^(t)`

Putting values in the formula we get,

`400(1+0.0725)^(7)`

400(1.632) = $652.80