joeldeclet11
contestada

Thurston deposited $8400 into a savings account that earns 2.5% simple interest each year calculated annually. What is the future value if Thurston’s account after 14 years?

Respuesta :

The answer is $11,340.

First you would find 2.5% $8400, which would be $210. then you would multiply the $210 by 14, which would be $2,940. And lastly, you would add the $2,940 to the $8400, which would be $11,340. Please tell me if I am wrong but this should be the answer for Apex.

Principle amount deposited by Thurston = $8400

Rate of interest = 2.5%

Time period = 14 years

Simple interest formula = [tex]\frac{P\times R\times T}{100}[/tex]

So, interest becomes = [tex]\frac{8400\times 2.5\times 14}{100}[/tex]

= $2940

Hence, the future value if Thurston’s account after 14 years will be =

[tex]8400+2940[/tex] = $11340