frank invested $5000 at 7% simple interest. part 1 of 2 (a) how much interest will he earn each year? the…

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. For part (a), we know $P=$5000$, $r = 0.07$ (since $7%=0.07$), and $t = 1$ year. The interest earned each year $I=P\times r\times1$. Substituting the values, we get $I = 5000\times0.07=$350$.

Step2: Calculate total interest for 8 years

For part (b), first find the total interest earned in 8 years. Using the simple - interest formula $I = Prt$ with $P = 5000$, $r=0.07$, and $t = 8$. So $I=5000\times0.07\times8=5000\times0.56 = 2800$.

Step3: Calculate total account value

The total value of the account $A$ is the sum of the principal $P$ and the total interest $I$. So $A=P + I$. Substituting $P = 5000$ and $I = 2800$, we get $A=5000 + 2800=$7800$.

Answer:

7800