Respuesta :
Compound interest earned would be $1.1034
Step-by-step explanation:
The formula for amount, when interest is compounded annually is
A = P(1+r)^n
Here
A= amount
P= principal
r= rate of interest
n= time period
So putting the values in the formula
A = 7(1+.05)^3
A = 7*(1.05)^3
A = 7*1.157625
A= 8.1034
So the Compound Interest would be
C.I = 8.1034-7.0
C.I = 1.1034
