f you invest $1,500 for 10 years in a term deposit with simple annual interest rate of 10%, the future value of the deposits at the end of the term will be _______________.Do not type the $ sign. Express your result with no decimals.
Question
f you invest sign. Express your result with no decimals.
Solution
To calculate the future value of an investment using simple interest, you can use the formula:
FV = P * (1 + rt)
where: FV = Future Value P = Principal amount (the initial amount you borrow or deposit) r = Annual interest rate (decimal) t = Time involved in years
In this case, you are investing $1,500 at an annual interest rate of 10% or 0.10 for 10 years.
So,
FV = $1,500 * (1 + (0.10 * 10))
Calculating the value inside the parentheses first:
1 + (0.10 * 10) = 1 + 1 = 2
Then multiply this by the principal amount:
FV = 3,000
So, the future value of the deposits at the end of the term will be $3,000. Since the question asks for the answer without the dollar sign and no decimals, the answer is 3000.
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