Question

Don invested $ 5 000 in an account paying 5% simple interest per year for 7 years.

Answer 1

FV= $6,750

Explanation:

Giving the following information:

Initial investment (P)= $5,000

Interest rate (r)= 5% simple interest

Number of periods (t)= 7 years

To calculate the future value of the investment, we need to use the following formula:

FV= (P*r*t) + P

FV= (5,000*0.05*7) + 5,000

FV= 1,750 + 5,000

FV= $6,750