Question

Deposit $650 in an account paying an annual simple interest rate of 7.2% find the future value of the investment in dollars after one year

Answer 1

Answr:

`\text{ \$696.80}`

Step-by-step explanation:

Here, we want to find the value of the investment after one year

Mathematically, we have it as adding the deposit with the simple interest

We have that as:

`I\text{ = }(PRT)/(100)`

P is the principal which is $650

R is the rate which is 7.2%

T is 1 year which is the time

Substituting the values, we have it that:

`I\text{ = }\frac{650*7.2\text{ }*1}{100}\text{ = \$46.80}`

Thus, we add the interest to the deposit:

`\text{ \$46.80 + \$650 = \$696.80}`