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. We know from part (a) that the annual interest $I$ is $350$ (since $I=P\times r$, $P = 5000$ and $r=0.07$, $I = 5000\times0.07=350$).

Step2: Calculate total interest after 8 years

The total interest $I_{total}$ after $t = 8$ years is $I_{total}=I\times t$. Substituting $I = 350$ and $t = 8$, we get $I_{total}=350\times8=2800$.

Step3: Calculate total account value

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

Answer:

$7800$