Question

Maria deposited $5,700 in an account that earns 8% simple interest. Maria made no withdrawals or deposits. What will be the total amount of money in her account after 6 years?

Answer 1

FV= $8,436

Explanation:

Giving the following information:

Initial investment (PV)= $5,700

Simple interest (i)= 8% = 0.08

Number of periods (n)= 6 years

To calculate the future value (FV), we need to use the following formula:

FV= PV*i*n + PV

FV= 5,700*0.08*6 + 5,700

FV= $8,436