Finite Math and Applied Calculus (6th Edition)

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

Chapter 2 - Review - Review Exercises - Page 158: 1

Answer

$ \$ 7,425$

Work Step by Step

The future value of an investment of PV dollars $\\$ at an annual simple interest rate of r $\\$ for a period of t years is$\\\\$ $FV=PV(1+rt)\\\\$ Here, $\\$ $PV=6000, r=0.0475, t=5\\\\$ $FV=6000(1+0.0475(5))= \$ 7,425$
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