Answer:
After 4 years, the balance in the account will be of $1,048.64.
Step-by-step explanation:
Initial amount: $800
Year 1: $800 + (800 x 7 / 100) = $800 + $56 = $856
Year 2: $856 + (856 x 7 / 100) = $856 + $59.92 = $915.92
Year 3: $915.92 + (915.92 x 7 / 100) = $915.92 + $64.11 = $980.04
Year 4: $980.04 + (980.04 x 7 / 100) = $980.04 + $68.60 = $1,048.64
As we can see in this table, compounded annually, the interest rate of 7% over an initial amount of $800 will reach $1,048.64 in four years.
