Answer to Question #302337 in Financial Math for ndanga

Question

On 29 March 2022,Justin deposited 3500 into savings account.The simple interest rate agreed upon was7,5%per year.The accumulated amount in the savings on 10 october 2022 is

Answer 1

$FV=P(1+rn)$

Where $P=3500, r=7.5\%, t=2.5$

$\therefore FV=3500(1+(0.075×2.5))$

$FV=4156.25$ will be amount in the savings account on 1 October, 2022.