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:

$\text{ \ 696.80}$

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:

$I\text{ = }\frac{PRT}{100}$

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:

$I\text{ = }\frac{650\times7.2\text{ }\times1}{100}\text{ = \ 46.80}$

Thus, we add the interest to the deposit:

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