Question

Deborah deposits $200 into an account that pays simple interest at the rate of 7%. How much will she have at the end of 4 months?

a) Present Value with simple interest
b) Future Value with simple interest
c) Future Value with compound interest
d) Simple Interest
e) Effective Rate

Answer 1

see whether you can apply these formulas, which you should have seen:

200(1+.07 * 4/12)
200(1+.07)^(4/12)