1. Sam deposits$700 in an investment saving account. The annual interest rate is 4.5%/annually compounded monthly. Determine

the amount after 7 years.

The total amount in 7 years is: $958.62

Step-by-step explanation:

Recall the formula for compound interest:

where:

A is the Accrued value (total in the account including accumulated interest), and in our case the unknown.

P is the Principal (amount initially deposited), and in our case $700.

r is the annual percent rate (but in decimal form) in our case 0.045

n is the number of compoundings done per year, and in our case 12 since it is compounded monthly

t is the time in years of the deposit.

Then the formula becomes:

which can be rounded to the cents: $958.62

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step-by-step explanation: