$13,000 is invested for 2 years at an annual simple interest rate of 17%. (a) How much interest will be earned? $ (b) What is the future value of the investment at the end of the 2 years? $
$13,000 is invested for 2 years at an annual simple interest rate of 17%. (a) How much interest will be earned? $ (b) What is the future value of the investment at the end of the 2 years? $
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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![$13,000 is invested for 2 years at an annual simple interest rate of 17%.
(a) How much interest will be earned?
\[ \text{\$} \_\_\_\_\_\_ \]
(b) What is the future value of the investment at the end of the 2 years?
\[ \text{\$} \_\_\_\_\_\_ \]
---
**Explanation:**
1. **Simple Interest Calculation:**
To calculate the interest earned using the simple interest formula:
\[
\text{Interest} = P \times r \times t
\]
where \( P = \$13,000 \), \( r = 0.17 \) (17%), and \( t = 2 \) years.
2. **Future Value Calculation:**
To find the future value of the investment:
\[
\text{Future Value} = P + \text{Interest}
\]
Plug the calculated interest back into this formula to find the total value after 2 years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8dbb38b-67db-4869-a2fb-b3f37c286b0c%2Ffeb3fc28-ae4b-4751-9553-cb580c3d465e%2Fp8cmrvg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:$13,000 is invested for 2 years at an annual simple interest rate of 17%.
(a) How much interest will be earned?
\[ \text{\$} \_\_\_\_\_\_ \]
(b) What is the future value of the investment at the end of the 2 years?
\[ \text{\$} \_\_\_\_\_\_ \]
---
**Explanation:**
1. **Simple Interest Calculation:**
To calculate the interest earned using the simple interest formula:
\[
\text{Interest} = P \times r \times t
\]
where \( P = \$13,000 \), \( r = 0.17 \) (17%), and \( t = 2 \) years.
2. **Future Value Calculation:**
To find the future value of the investment:
\[
\text{Future Value} = P + \text{Interest}
\]
Plug the calculated interest back into this formula to find the total value after 2 years.
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