You deposit $500 in an account that pays 7% interest compounded yearly. 1. Write an exponential growth model to represent the situation 2. what is the balance of the account after 7 years

General form: P(1 + I)^n, where P is the principal amount, I is the interest in decimal form and n is the number of years. Since it's compounded yearly, our general form becomes: 500(1 + 0.07)^n Now, we want to calculate 7 years worth. Substitute n = 7 500(1.07)^7 = $802.90