Find the future value of $700 deposited at 3% for 9 years if the account pays simple interest and the account pays compounded annually?
The future value of an account that pays simple interest is what?
F = P(1+rt)
where t is years and r is rate
The future value (FV) of an account that pays simple interest can be calculated using the formula:
FV = P(1 + rt)
where:
FV = future value
P = principal amount (initial deposit)
r = interest rate (in decimal form)
t = time period in years
In this case, we have:
P = $700
r = 3% = 0.03
t = 9 years
Substituting the values into the formula, we get:
FV = $700(1 + 0.03 * 9)
FV = $700(1 + 0.27)
FV = $700(1.27)
FV = $889
Therefore, the future value of $700 deposited at 3% for 9 years, with simple interest, is $889.
The future value of an account that pays simple interest can be calculated using the formula:
Future Value = Principal (1 + Interest Rate * Time)
In this case, the principal (amount deposited) is $700, the interest rate is 3% (or 0.03 as a decimal), and the time is 9 years.
To find the future value, plug in these values into the formula:
Future Value = $700 (1 + 0.03 * 9)
Future Value = $700 (1 + 0.27)
Future Value = $700 (1.27)
Future Value = $889
Therefore, the future value of $700 deposited at 3% for 9 years, with simple interest, would be $889.