suppose youre offered the following two accounts to invest $10,000 for 25 years: 9% simple interest and 8%…

suppose youre offered the following two accounts to invest $10,000 for 25 years: 9% simple interest and 8% interest compounded monthly. \npart 0 / 3\npart 1 of 3\nthe future value of $10,000 using 9% simple interest is $ .\nround your answer to the nearest cent. do not round any intermediate steps.

suppose youre offered the following two accounts to invest $10,000 for 25 years: 9% simple interest and 8% interest compounded monthly. \npart 0 / 3\npart 1 of 3\nthe future value of $10,000 using 9% simple interest is $ .\nround your answer to the nearest cent. do not round any intermediate steps.

Answer

Explanation:

Step1: Recall simple - interest formula

The formula for simple - interest future value is $A = P(1+rt)$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$10000$, $r = 0.09$ (since $9%=0.09$), and $t = 25$ years.

Step2: Substitute values into the formula

$A=10000\times(1 + 0.09\times25)$ First, calculate the product inside the parentheses: $0.09\times25=2.25$. Then, $1+2.25 = 3.25$. Finally, $A = 10000\times3.25=$32500.00$

Answer:

$32500.00$