Given:
Principal P=12000
Interest r = 7 % =7/100 = 0.07.
Time t= 4 years.
Compounded annually so n=1.
The formula for the compound amount is
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Substitute P=12000, r=0.07, t=4 and n=1, we get
[tex]A=12000(1+\frac{0.07}{1})^{(1)(4)}[/tex][tex]A=12000(1+0.07)^4[/tex][tex]A=12000(1.07)^4[/tex][tex]A=15729.55212[/tex]Hence the compound amount is $ 15729.55.
