Question

Thurston deposited $8400 into a savings account that earns 2.5% simple interest each year calculated annually. What is the future value if Thurston’s account after 14 years?

Answer 1

Principle amount deposited by Thurston = $8400

Rate of interest = 2.5%

Time period = 14 years

Simple interest formula =
`(P* R* T)/(100)`

So, interest becomes =
`(8400* 2.5* 14)/(100)`

= $2940

Hence, the future value if Thurston’s account after 14 years will be =

`8400+2940` = $11340

Answer 2

The answer is $11,340.

First you would find 2.5% $8400, which would be $210. then you would multiply the $210 by 14, which would be $2,940. And lastly, you would add the $2,940 to the $8400, which would be $11,340. Please tell me if I am wrong but this should be the answer for Apex.