Answer: 1347.79 (Sorry for taking so long to answer)
Step-by-step explanation:
Understand the Problem:
Rachel puts $700.00 into an account, and it earns 14% interest compounded annually. You need to find out how much will be in the account after 5 years.
Identify the Given Values:
Principal amount - $700.00
Annual interest rate - 14%
Number of times interest is compounded per year - 1 (compounded annually)
Time in years - 5 years
Plug in the values with the Compound Interest Formula:
A = P (1 + 0.14/1)^1*5
Calculate the Exponential Expression:
A = 700 * (1.14)^5
Evaluate the Exponential Expression:
A ≈ 700 * 1.925414
Calculate the Final Amount:
A ≈ 1347.79
After 5 years, there will be approximately $1347.79 in the account.
