7,000 dollars is placed in a savings account with an annual interest rate of 3%. If no money is added or removed from the account, which equation represents how much will be in the account after 7 years?

Solution

7, 000 d o ll a rs i s pl a ce d in a s a v in g s a cco u n t w i t h an ann u a l in t eres t r a t e o f 3%. I f n o m o n ey i s a dd e d or re m o v e d f ro m t h e a cco u n t, w hi c h e q u a t i o n re p rese n t s h o w m u c h w i ll b e in t h e a cco u n t a f t er 7 ye a rs ?

Amount : 8470

Solution steps

Translate the problem into an equation:

A = 7000 (1 + 0.03 \cdot 7)

7000 (1 + 0.03 \cdot 7) = 8470

Amount : 8470