Answer: D
Step-by-step explanation: Replace the N in the equation given with a 7 and solve. This gives you 4500(1.02)^6. SOLVE THE POWER FIRST. 1.02 to the 6th power is 1.126... multiply by 4500 and you get 5,067.7, which is D when rounded.
The correct option is Option A:  $13,437 will be there in the account at the beginning of year 7.
The compounds interest can be estimated by using the following formula
[tex]A(n) = P(1+r)^{t-1}[/tex]
where
A(n): the final amount
P: the initial deposit
r: the interest rate (in decimal)
n: the time (in year)
here the compound interest will be C.I= A-P
Given in the problem that
the initial deposit in the account is $4500 and the time period is 7 years,
so A=4500 and
t=7
As we know, the interest will be compounded one time per year.
For converting the interest rate from percentage into decimal form, we will divide the rate of interest by 100.
r= 2%= 2/100
⇒r=0.02
The given equation is
[tex]A(n) = 4500(1+0.2)^{n-1}[/tex]
putting the above values in above equation
[tex]A(n) = 4500(1+0.2)^{n-1}[/tex]
⇒ [tex]A(n) = 4500(1+0.2)^{7-1}[/tex]
⇒ [tex]A(n) = 4500(1+0.2)^{6}[/tex]
⇒ A(n) =13,436.93
⇒ A(n)=13437
Therefore correct option is Option A:  $13,437 will be there in the account at the beginning of year 7.
Learn more about compound interest
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