# SOLUTION: \$40,000 is invested at 5% interest. What is the amount of money in the account after 7 years if the interest is compounded annually?

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 Click here to see ALL problems on Finance Question 363822: \$40,000 is invested at 5% interest. What is the amount of money in the account after 7 years if the interest is compounded annually?Found 2 solutions by checkley77, penguin_129:Answer by checkley77(12569)   (Show Source): You can put this solution on YOUR website!40,000(1+.05)^7 40,000*1.05^7 40,000*1.4071=\$56,284 ans. Answer by penguin_129(5)   (Show Source): You can put this solution on YOUR website!We use the formula for compound interest with P = 40,000 ; r = 5% = 0.05 ; m = 1 and t = 7. The amount of the money in the account after 7 years: A = P * ( 1 + r/m )^(t*m) = 40,000 * ( 1 + .05/1 )^(7*1) = \$56,284