Find the future value of the deposit if the account pays simple interest.
-$760 at 4% for 9 months

Question

Quizplus · Accepted Answer

The future value of a deposit using simple interest can be calculated with the formula $FV = P(1 + rt)$, where $FV$ is the future value, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. For this problem, $P = $760$, $r = 4\% = 0.04$, and $t = 9/12$ years (since 9 months is 9/12 of a year). Plugging these values into the formula gives $FV = 760(1 + 0.04 \times \frac{9}{12}) = 760(1 + 0.03) = 760(1.03) = $782.80$.

Find the Future Value of the Deposit If the Account