Heather deposited $1,700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years?

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JeanaShupp JeanaShupp · Answer 1 · 2019-09-14T09:54:50+02:00

Answer: $3865.8

Explanation:

The formula to find the simple interest is given by :-

[tex]I=Prt[/tex], where P is the initial amount deposited , r is the rate of interest in decimal and t is the time period in years.

Given : P= $1700 ; r= 9.8%=0.098 ; t=13 years

Then , the simple interest earned in 13 years will be :-

[tex]I=1700\times0.098\times13=2165.8[/tex]

Now, the combined amount = P+I =$1700+$2165.8= $3865.8

Hence, the credit union would owe Heather $3865.8 in 13 years.

shahzaibdaha78787 shahzaibdaha78787 · Answer 2 · 2021-02-04T16:11:15+01:00

Answer:= $3,865.80

Explanation:

alculate the future value (FV) of the investment in 13 years as follows:

I = Interest Earned in One Year x Number of Years

= (9.8% x $1,700.00) per year x 13 years

= $2,165.80

FV n = Initial Investment (PV 0 ) + Total Interest Earned (I)

FV 13 = $1,700.00 + $2,165.80

= $3,865.80

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