If $1000 is deposited in an account earning 1% simple interest, what is the future value in 5 years?
If $1000 is deposited in an account earning 1% simple interest, what is the future value in 5 years?
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 5RE: A retirement account is opened with an initialdeposit of 8,500 and earns 8.12 interest compounded...
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If $1000 is deposited in an account earning 1% simple interest, what is the future value in 5 years?
Expert Solution
Step 1
Given that, the investment amount I=$1000, interest rate r=1% and time T=5 years.
It is known that, the formula for the future value is , where I is investment amount, R is interest rate and T is time in years.
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