SOLUTION: You invest $2,000 into an account that earns 1.5% interest compounded each year for 7 years. How much money will you have in the account at the end of 7 years? Round to the neares

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Question 812915: You invest $2,000 into an account that earns 1.5% interest compounded each year for 7 years. How much money will you have in the account at the end of 7 years? Round to the nearest dollar.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Use the compound interest formula:

A = P(1+r/n)^(n*t)

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where

A = amount in the account after t years
P = initial amount invested
r = interest rate (in decimal form)
n = compounding frequency
t = number of years

In this case

A = unknown (we're solving for this)
P = 2000
r = 0.015 (1.5% = 1.5/100 = 0.015)
n = 1 (compounding once per year)
t = 7 (for 7 years)

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Plug all these values into the equation to get...

A+=+P%281%2Br%2Fn%29%5E%28n%2At%29

A+=+2000%281%2B0.015%2F1%29%5E%281%2A7%29

A+=+2000%281%2B0.015%29%5E%281%2A7%29

A+=+2000%281.015%29%5E%281%2A7%29

A+=+2000%281.015%29%5E%287%29

A+=+2000%281.10984491290178%29

A+=+2219.68982580356

A+=+2219.69 Rounding to the nearest cent

A+=+2220 Rounding to the nearest dollar

Final Answer: $2,220.00