Final answer:
The future value of a $700 term deposit at 1.75% per annum for a 230-day term is approximately $707.71 when using the simple interest formula.
Step-by-step explanation:
The student asked to calculate the future value of a term deposit of $700 with a 230-day term at a 1.75% per annum interest rate. To answer this question, we need to use the formula for simple interest, since no compounding interval is mentioned:
Future Value = Principal × (1 + (Interest Rate × Time))
Here, we calculate Time in years, which is 230 days divided by 365 days (for a standard year). The calculation is as follows:
- Time = 230 / 365 = 0.6301 years (approximately).
- Interest = 1.75% / 100 = 0.0175.
- Future Value = $700 × (1 + (0.0175 × 0.6301))
- Future Value = $700 × 1.01101 = $707.707
Therefore, the future value of the deposit after 230 days will be approximately $707.71.