SOLUTION: A principal of $500 is invested in an account at 7% per year compounded annually. What is the total amount of money in the account after 5 years?

Question 840553: A principal of $500 is invested in an account at 7% per year compounded annually. What is the total amount of money in the account after 5 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A principal of $500 is invested in an account at 7% per year compounded annually. What is the total amount of money in the account after 5 years?
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A(t) = P(1+(r/n))^(nt)
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A(5) = 500(1+(0.07/1))^(1*5)
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A(5) = 500(1.07)^5
A(5)= $701.28
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Cheers,
Stan H.
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