Question

40 points David invests $10,000 in a savings account that pays 3.5% simple interest. If David makes no withdrawals or deposits to the account, how much will be in the account after 7 years? O $2,450 O $11,750 O $12,450 O Not Here​

Answer 1

FV= $12,450

Explanation:

Giving the following information:

David invests $10,000 in a savings account that pays 3.5% simple interest.

To calculate the future value, we need to use the following formula.

FV= PV*(1+i*n)

n= 7

i= 0.035

PV= 10,000

FV= 10,000*(1+0.035*7)

FV= $12,450