Question

Chaleah deposited $700 in a new account that earns 5 simple interest. After 4 years, how much interest will she have earned? How much total money will Chaleah have after 4 years

Answer 1

FV= $875

Explanation:

Giving the following information:

Initial investment (PV)= $700

Simple interest (i)= 5% = 0.05

Number of periods (n)= 4 years

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

FV= PV*i*n + PV

FV= 700*0.05*5 + 700

FV= $875