Answer: The future value of the investment after 2 years is $807.8
Step-by-step explanation:
The formula for simple interest is expressed as
I = PRT/100
Where
P represents the principal or amount invested.
R represents interest rate
T represents time in years
I = interest after t years
From the information given
T = 2 years
P = $700
R = 7.7%
Therefore
I = (700 × 7.7 × 2)/100
I = 10780/100
I = 107.8
The total amount in the account after 2 years would be
700 + 107.8 = $807.8
