Problem

Find the missing value. Assume all interest is simple interest. Do not round intermediate calculations. Round your final answers to the nearest cent. $\begin{array}{cccc}\text { Principal } & \text { Rate } & \text { Time } & \text { Future Value } \\ \$ 22,000 & 9 \% & 5 \text { years } & \$ \square\end{array}$

Solution

Step 1 :We are given a problem where we need to find the future value of an investment. The principal amount is $22,000, the annual interest rate is 9%, and the time period is 5 years.

Step 2 :We use the formula for simple interest to solve this problem. The formula is \(FV = P(1 + rt)\), where FV is the future value of the investment, P is the principal investment amount, r is the annual interest rate (in decimal), and t is the time the money is invested for, in years.

Step 3 :Substitute the given values into the formula: \(FV = 22000(1 + 0.09 * 5)\).

Step 4 :Solve the equation to find the future value.

Step 5 :The future value of the investment is \(\boxed{\$31,900.00}\).

From Solvely APP
Source: https://solvelyapp.com/problems/19465/

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