a=p(1+r)^t a=final number p=principal balance (initial)**without interest** r=interest rate t=the amount of time p=$4000 t= 7yrs r=2%=0.02 we need to turn 2% into a decimal, to do that you divide 2 by 100 which is 0.02 now we rewrite the equation- a=4000(1+0.02)^7 a=4000*1.1486
