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Upon graduation, Ayla is given a gift of $4700. If this money is invested at 3.5%simple interest, find the total value of the investment after 7 years.

Respuesta :

We have to use the formula for simple interest to find the corresponding value in the future:

[tex]FV=PV\cdot(1+in)[/tex]

We have that:

• PV = $4700.

,

• i = 3.5%

,

• n = 7

Then, we have:

[tex]FV=4700\cdot(1+\frac{3.5}{100}\cdot7)\Rightarrow FV=4700\cdot(1+0.245)\Rightarrow FV=4700\cdot(1.245)[/tex]

Thus

[tex]FV=5851.5[/tex]

Then, the total value of the investment after seven years will be $5851.50.

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