Find the future value of $800 deposited at 5% for 2 years if the account pays simple interest, and the account pays interest compounded annually

Find the future value of $700 deposited at 3% for 7 years if the account pays simple interest and the account pays interest compounded annually

Simple interest is just:

Interest = Principle x rate x time
be sure to write % as a decimal to 5% = .05 and 3% = .03
You can add your interest to the original value to find the future value.

Compounded annually:
Future value = P(1+ rate)^time
tiffany's problem:
Future value = P(1+.03)^7

To find the future value of the deposit using simple interest, we can use the formula:

Future Value = Principal + (Principal * Rate * Time)

Given:
Principal (P) = $800
Rate (R) = 5% or 0.05
Time (T) = 2 years

Using the formula, we can calculate the future value:

Future Value = $800 + ($800 * 0.05 * 2)
Future Value = $800 + ($800 * 0.1)
Future Value = $800 + $80
Future Value = $880

So, the future value of $800 deposited at 5% for 2 years with simple interest is $880.

To find the future value using compound interest, we can use the formula:

Future Value = Principal * (1 + Rate)^Time

Given:
Principal (P) = $800
Rate (R) = 5% or 0.05
Time (T) = 2 years

Using the formula, we can calculate the future value:

Future Value = $800 * (1 + 0.05)^2
Future Value = $800 * (1.05)^2
Future Value = $800 * 1.1025
Future Value = $882

So, the future value of $800 deposited at 5% for 2 years with interest compounded annually is $882.

To find the future value of $800 deposited at 5% interest for 2 years, first, let's calculate the future value with simple interest:

Simple Interest Formula:
Future Value (FV) = P * (1 + (r * t))

Where:
P = Principal amount ($800)
r = Interest rate per period (5% or 0.05)
t = Number of periods (2 years)

Substituting the values into the formula:
FV = $800 * (1 + (0.05 * 2))
FV = $800 * (1 + 0.10)
FV = $800 * 1.10
FV = $880

Therefore, the future value of $800 deposited at 5% interest for 2 years with simple interest is $880.

Now, let's calculate the future value with compound interest, compounded annually:

Compound Interest Formula:
Future Value (FV) = P * (1 + r)^t

Where:
P = Principal amount ($800)
r = Interest rate per period (5% or 0.05)
t = Number of periods (2 years)

Substituting the values into the formula:
FV = $800 * (1 + 0.05)^2
FV = $800 * (1.05)^2
FV = $800 * 1.1025
FV = $882

Therefore, the future value of $800 deposited at 5% interest for 2 years with compound interest, compounded annually, is $882.