We can use the compound interest formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
The principal value, P, is the initial amount of money: $4129.
The rate of interest, r, is 6.45%, or .0645.
The number of times compounded, n, per year is 1.
The number of years, t, is 7.
Plug all of these values into the equation and solve for A.
[tex]A=4129(1+\frac{.0645}{1})^{(1)(7)}[/tex]
Evaluate the expression...
[tex]A=6395.3533[/tex]
Rounded to the nearest dollar, this value becomes: $6395.
The investment will be worth $6395 after 7 years.
