I DINT UNDERSTAND Simple Interest Independent Practice$7,200 is deposited into an accouunt that eams 4.5 smple interest for 8 years,O 2592O 2685O 2900O 3000Common-assessment-delivery/start/4732416919?action-Donresume&submissionld%-D4316124O O O O

Explanation of the answer is as follows

Answered: $7,200 is deposited into an accouunt…

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter8: Sequences, Series, And Probability

Section8.3: Arithmetic Sequences And Series

Problem 39E

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Present Value Present value is the amount of money that must be invested now at a given rate of interest to produce a given future value. For a one-year investment, the present value can be determined using PresentValue=FutureValue1+r, Where r is the yearly interest rate expressed as a decimal. Thus, if yearly interest rate is 8%, then 1+r=1.08. If an investment yields an yearly interest rate of 12% is available, what is the present value of an investment that will be worth 5000 at the end of 1 year? That is, how much must be invested today at 12% in order for the investment to have a value of 5000 at the end of a year?
Depreciation Once a new car is driven away from the dealer, it begins to lose value. Each year, a car loses 10% of its value. This means that each year the value of a car is 90% of the previous year’s value. If a new car was purchased for $20,000, the value at the end of the first year would be $20000(0.90) and the value of the car after the end of the second year would be $20000(0.90)2. Complete the table shown below. What will be the value of the car at the end of the eighth year? Simplify the expression, to show the value in dollars.
Future Value Business and finance texts refer to the value of an investment at a future time as its future value. If an investment of P dollars is compounded yearly at an interest rate of r as a decimal, then the value of the investment after t years is given by FutureValue=P1+rt. In this formula, 1+rt is known as the future value interest factor, so the formula above can be written as FutureValue=PFuturevalueinterestfactor Financial officers normally calculate this or look it up in a table a. What future value interest factor will make an investment double? b. Say you have an investment that is compounded yearly at a rate of 9%. Find the future value interest factor for a 7-year investment. c. Use the results from part b to calculate the 7-year future value if your initial investment is 5000.

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$7,200 is deposited into an accouunt that earns 4.5 smple interest for 8 years O 2592 O 2685 O 2900 O 3000