Question

Find the future value of $1800 deposited at 8% for 5 years if the account pays simple interest, and the account pays interest compounded annually.

Answer 1

The answer is 2,644.79.

You would have to calculate the three variables to get and complete your answer.

Explanation:

Answer 2

For one year:
0.08(1800) + 1800
But because it is 5 years:
5(0.08(1800)) + 1800
0.4(1800) + 1800
We can make it simpler:
1.4(1800)
Multiply:
2520
YOU NOW HAVE $2520