An investor puts $800 in an account that pays 7% interest, compounded annually. Find the amount in the account after 4 years.

the amount in the account after 4 years is $1049

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 800

r = 7% = 7/100 = 0.07

n = 1 because it was compounded once in a year.

t = 4 years

Therefore,

A = 800(1+0.07/1)^1 × 4

A = 800(1+0.07)^4

A = 800(1.07)^4

A = 1049

An inverse operation is two operations that undo each other e.g. addition and subtraction or multiplication and division. You can perform the same inverse operation on each side of an equivalent equation without changing the equality. This gives us a couple of properties that hold true for all equations.