Question 459561
Hey,

So compound interest means that every year,, interest is made off of the money in the bank regardless if it has increased because of previous interest. This may be confusing so here is the problem:

1st year:
7000 x .045 = 315
so at the end of the first year there is $7315 in the bank. 
2nd year:
7315 x .045 = 329.175
so at the end of the second year there is $7644.175 in the bank.
3rd year:
7664.175 x .045 = 343.987875
so at the end of the third year there is $8008.162875 in the bank.
4th year:
8008.162875 x .045 = 360.367329375
so at the end of the fourth year there is $8368.530204375 in the bank.
5th year:
8368.530204375 x .045 = 376.583859196875
so at the end of the fifth year there is $8745.114063571875 in the bank.
6th year:
8745.114063571875 x .045 = 393.530132860734375
So at the end of 6 years there is $9138.644196432609375 in the account.
you should probably simplify the answer:
$ 9138.64 
I hope this help!