Question

question 2 (mandatory) (1 point)
in 1999, a sum of $600 is invested at a rate of 2.9% per year for 8 years. what is the value of the investment when it matures?

a) $739.20

b) $754.18

c) $1258.40

d) $3000

Explanation:

Step1: Identify the simple - interest formula

The formula for simple - interest is $A = P(1+rt)$, where $A$ is the final amount, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the percentage to decimal

The annual interest rate $r = 2.9\%=0.029$, $P = 600$, and $t = 8$.

Step3: Substitute values into the formula

$A=600\times(1 + 0.029\times8)$
First, calculate the value inside the parentheses: $0.029\times8=0.232$, then $1+0.232 = 1.232$.
Then, $A = 600\times1.232=739.2$.

Answer:

a) $739.20$