We want find the compound interest annualy for 4 years, $8500, at 7%'
The formula for the compound amount over one year is;
[tex]A=P(1+\frac{r}{100})[/tex]
1st year:
[tex]\begin{gathered} A=8500(1+0.07) \\ A=\text{ \$9095} \end{gathered}[/tex]
2nd year:
[tex]\begin{gathered} A=9095(1.07) \\ A=\text{ \$9731.65} \end{gathered}[/tex]
3rd year:
[tex]\begin{gathered} A=9731.65(1.07) \\ A=\text{ \$10412.87} \end{gathered}[/tex]
4th year:
[tex]\begin{gathered} A=10412.87(1.07) \\ A=\text{ \$11141.77} \end{gathered}[/tex]
