if 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
if you invest sign. Express your result with no decimals.
Solution 1
To calculate the future value of an investment using simple interest, you can use the formula:
FV = P * (1 + rt)
where:
- FV is the future value of the investment
- P is the principal amount (the initial amount of money)
- r is the annual interest rate (in decimal form)
- t is the time the money is invested for (in years)
In this case, P = $1500, r = 10% = 0.10, and t = 10 years.
Substituting these values into the formula gives:
FV = $1500 * (1 + 0.10 * 10)
Solving this equation gives:
FV = $1500 * (1 + 1)
FV = $1500 * 2
FV = $3000
So, the future value of the deposits at the end of the term will be $3000.
Solution 2
To calculate the future value of an investment using simple interest, you can use the formula:
FV = P * (1 + rt)
where:
- FV is the future value of the investment
- P is the principal amount (the initial amount of money)
- r is the annual interest rate (in decimal form)
- t is the time the money is invested for (in years)
Given in the problem: P = $1500 r = 10% = 0.10 t = 10 years
Substituting these values into the formula:
FV = 1500 * (1 + 0.10 * 10)
Solving the equation:
FV = 1500 * (1 + 1)
FV = 1500 * 2
FV = $3000
So, the future value of the deposits at the end of the term will be 3000.
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