You deposit $800 in an account paying 7.9% simple interest. Find the future value of the investment after 2 years.
To find the future value of an investment with simple interest, you can use the following formula:
Future Value = Principal + (Principal * Interest Rate * Time)
Given:
Principal (P) = $800
Interest Rate (R) = 7.9% expressed as a decimal (0.079)
Time (T) = 2 years
Substituting the given values into the formula, we get:
Future Value = $800 + ($800 * 0.079 * 2)
Calculating the value, we have:
Future Value = $800 + ($800 * 0.158)
Future Value = $800 + $126.40
Future Value = $926.40
Therefore, the future value of the investment after 2 years is $926.40.
To find the future value of an investment with simple interest, you can use the formula:
Future Value = Principal + (Principal * Interest Rate * Time)
Here, the principal (P) is $800, the interest rate (r) is 7.9%, and the time (t) is 2 years.
First, convert the interest rate to decimal form by dividing it by 100:
Interest rate (r) = 7.9 / 100 = 0.079
Now substitute the values into the formula:
Future Value = $800 + ($800 * 0.079 * 2)
Calculate the expression inside the parentheses:
Future Value = $800 + ($800 * 0.158)
Multiply the values within the parentheses:
Future Value = $800 + $126.40
Add the two values to find the future value:
Future Value = $926.40
Therefore, the future value of the investment after 2 years will be $926.40.
I = PRT
I = 800 * 0.079 * 2
I = ?