Answer:
A) $14,025.52
B) $4,025.52
Step-by-step explanation:
A.
The compound interest formula we like is ...
A = P(1 +r)^t
gives the amount in the account when principal P is compounded annually at rate r for t years.
A = $10,000(1 +0.07)^5 ≈ $14,025.52 . . . . balance after 5 years
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B.
The interest is the difference between the amount deposited and the balance:
$14,025.52 -10,000 = $4,025.52 . . . . interest earned
