If $1000 is deposited in an account earning 1% simple interest, what is the future value in 5 years?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
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? 

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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 FV=I×1+R×T, where I is investment amount, R is interest rate and T is time in years.

 

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