Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 2 - Section 2.1 - Simple Interest - Exercises - Page 132: 13

Answer

$\$ 5200.00$

Work Step by Step

The future value ($FV=?$) of an investment of $PV=5000$ dollars at an annual simple interest rate of $r =8\displaystyle \%=\frac{8}{100}=0.08$ for a period of $t =$ ($6$ months)$\displaystyle \cdot\frac{1\ year}{12\ months}=\frac{6}{12}$ years $=0.5$ years is $FV=PV(1+rt)$ $FV=5000(1+0.08(0.5)=5200$
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