Find the future value of $800 deposited at 5% for 2 years if the account pays simple interest, and the account pays interest compounded annually
2 answers
Find the future value of $700 deposited at 3% for 7 years if the account pays simple interest and the account pays interest compounded annually
Simple interest is just:
Interest = Principle x rate x time
be sure to write % as a decimal to 5% = .05 and 3% = .03
You can add your interest to the original value to find the future value.
Compounded annually:
Future value = P(1+ rate)^time
tiffany's problem:
Future value = P(1+.03)^7
Interest = Principle x rate x time
be sure to write % as a decimal to 5% = .05 and 3% = .03
You can add your interest to the original value to find the future value.
Compounded annually:
Future value = P(1+ rate)^time
tiffany's problem:
Future value = P(1+.03)^7
1 answer