Question

David invests 10,000 in a sqving account that pays 3.5% simple interest. If David makes no withdrawals or deposits to the account, how much will be in the account after 7 years

Answer 1

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount invested.

P represents the principal or amount invested.

R represents interest rate

T represents the duration of the investment in years.

From the information given,

P = 10000

R = 3.5%

T = 7 years

I = (10000 × 3.5 × 7)/100 = $2450

The amount that will be in the account after 7 years is

10000 + 2450 = $12450