If 7000 dollars is invested in a bank account at an interest rate of 6 per cent per year, find the amount in the bank after 14 years if interest is compounded annually

Therefore the amount in the bank after 14 years is $15826.33 (approx).

Explanation:

Compound interest: The amount of the principal is not same all year.

The principal of first year = The initial amount principal

Second year principal = Principal+ interest of first year

Third year principal =  The principal of second year + interest of second year.

and so on....

The amount

 Here principal = $7000

r = rate of interest = 6% = 0.06

n = Time = 14 year

Amount =

            =$ 15826.33 (approx)

Therefore the amount in the bank after 14 years is $15826.33 (approx)

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