We are given a savings account with an initial balance of $1893.00. The interest rate is 3% per year, compounded annually. We want to find the balance in the account 7 years from now.

1. Problem Description

We are given a savings account with an initial balance of $1893.

0

0. The interest rate is 3% per year, compounded annually. We want to find the balance in the account 7 years from now.

2. Solution Steps

The formula for compound interest is:

$A = P(1 + r)^t$

where:

$A$ is the future value of the investment/loan, including interest

$P$ is the principal investment amount (the initial deposit or loan amount)

$r$ is the annual interest rate (as a decimal)

$t$ is the number of years the money is invested or borrowed for

In this problem:

$P = 1893.00$

$r = 3\% = 0.03$

$t = 7$

Substitute these values into the formula:

$A = 1893.00(1 + 0.03)^7$

$A = 1893.00(1.03)^7$

$A = 1893.00(1.229873865)$

$A = 2328.145112$

Round the answer to two decimal places:

$A = 2328.15$

3. Final Answer

The balance in the account 7 years from now will be $2328.15.