Question

If a person invests $220 at 7% annual interest, find the approximate value of the investment at the end of 10 years.

Answer 1

The amount is $432.77 and the interest is $212.77

Answer 2

$\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 220\\ r=rate\to 7\%\to \frac{7}{100}\dotfill &0.07\\ t=years\dotfill &10 \end{cases} \\\\\\ A=220[1+(0.07)(10)]\implies A=220(1.7)\implies A=374$