Answer:
[tex]\$1,315.93[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=7\ years\\ P=\$1,000\\ r=0.04\\n=1[/tex]
substitute in the formula above
[tex]A=\$1,000(1+\frac{0.04}{1})^{1*7}=\$1,315.93[/tex]
