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The problem in the image asks about a man who invests $7,000 in a savings plan with an interest rate of 7% per year. We are to determine how much money will be in the account at the end of 1 year.

This is a simple interest calculation, assuming it’s compound interest annually (as typically implied):

The formula for compound interest is:

\[
A = P \times \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount of money after interest
- $P$ is the principal (initial amount) = $7,000
- $r$ is the annual interest rate (in decimal) = 7% = 0.07
- $n$ is the number of times interest is compounded per year (in this case, annually, so $n = 1$)
- $t$ is the time in years = 1

Now, plugging in the values:

\[
A = 7000 \times \left(1 + \frac{0.07}{1}\right)^{1 \times 1}
\]

\[
A = 7000 \times (1 + 0.07) = 7000 \times 1.07
\]

\[
A = 7490
\]

So, the amount in the account after 1 year will be **$7,490**.

Would you like further details on this, or have any questions?

Here are some related questions to deepen understanding:
1. How would the result change if the interest was compounded quarterly?
2. What if the interest was simple rather than compounded? How would we calculate it?
3. What is the formula for continuously compounded interest, and how would we apply it here?
4. How would a change in the interest rate to 5% affect the final amount?
5. How can this calculation be expanded for a 5-year investment?

**Tip:** Always double-check if interest is compounded and how often, as it can significantly affect the final amount!

A man invests $7,000 in a savings plan that pays 7% per year. How much money will be in the account at the end of 1 year?

Learn how to calculate compound interest for a $7,000 investment with a 7% annual interest rate over 1 year. This problem involves using the compound interest formula to find the total amount in the account after 1 year. Suitable for students in Grades 9-12.

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