You deposit $1295 dollars in a mutual fund that provides an average return of 8.4% interest compounded annually.

Find your account balance after 7 years.

Answer: $2,277.5

Step-by-step explanation:

Hi, to answer this question we have to apply the compounded interest formula:

A = p (1 + r) ^t

A = total amount (principal plus returns)

P = principal invest

r = interest rate (decimal form)

t = time (in this case years)

Replacing with the values given:

A = 1295 (1 + 8.4/100) ^7

A = 1295 (1 + 0.084) ^7

A = 1295 (1.084) ^7

A = 2,277.5