Answer:
C: $747
Step-by-step explanation:
To find the amount after compound interest, we use the formula:
[tex]a = {p(1 + \frac{n}{100} })^{t} [/tex]
Where a is the result amount, p is the amount he deposited, n being the interest rate and t being the amount of years. Substitute these variables with the amounts in the question to get
[tex]7200 {(1 + \frac{2.5}{100} })^{4} [/tex]
Input that into a calculator to get $7947.45281...
Next, subtract the original amount of 7200 and you will result with
747.45281 which is 747 corrected to the nearest dollar.
