Answer:
372.95
Step-by-step explanation:
To calculate compound interest, which Amount - Principal but we dont know the value for amount so we find the amount first by using the formula.
A = P ( 1 + R ) ^n
100
where p = principal ($1200)
a = amount (?)
r = interest rate (7%)
n = time ( no of years) (4)
A = 1200 ( 1 + 7 ) ^4
100 A = 1200 ( 1 + 0.07) ^4
A = 1200 ( 1.07)^4 , A = 1200 ( 1.31079)
A = 1,572.95
WE now find compound interest with the formula:
C = AMOUNT - PRINCIPAL = $1,572.95 - $1200
C = 372.95
