Question

An investment of 2700 is made for 8 months at an annual simple interest rate of 2.25% what is the future value of the investment (in dollars)

Answer 1

Okay, here we have this:

Considering the provided information, we are going to calculate the requested amount, so we obtain the following:

Let's replace in the following simple interest formula: A = P(1 + rt)

`\begin{gathered} A=2700\mleft(1+(2.25)/(100)*(8)/(12)\mright) \\ A=2700\mleft(1+0.0225*0.666667\mright) \\ A=$2,740.50$ \end{gathered}`

Finally we obtain that the future value of the investment is $2740.5.