Question

If $7437.02 is invested at 1.5% simple interest, then what is

the value of the investment after 4.9 years? Give your answer
rounded to the nearest cent.

Answer 1

The value of the investment after 4.9 years with simple interest is $7980.95.

Step-by-step explanation:

To calculate the value of the investment after 4.9 years with simple interest, we can use the formula:

Interest = Principal x Rate x Time

Principal = $7437.02, Rate = 1.5%, Time = 4.9 years

Interest = $7437.02 x 0.015 x 4.9 = $543.9333

Adding the interest to the principal, the value of the investment after 4.9 years is $7437.02 + $543.9333 = $7980.9533

Rounded to the nearest cent, the value of the investment is $7980.95.