A deposit of $1,700 earning SIMPLE annual interest (no compounding) of 4.3% for a period of...

Question

Question

A deposit of $1,700 earning SIMPLE annual interest (no compounding) of 4.3% for a period of 18 years will grow to approximately?

$3,627

$3,016

$5,127

$1,316

Answer 1

Answer #1

Answer

(b) $3016

If this is simple interest then same amount of interest will be received every year

i.e. $1700 x 4.3% = $73.1 per year

Now for 18 years it will be

$73.1 x 18 = $1315.8 or $1316

Total amount will be invested + interest received i.e. $1700 + $1316= $3016

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Answer 2

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