MBF3C Gr. 11 Math: Financial ApplicationAnswer ASAP :)

Formula for Simple Interest: I= Prt I = the interest in dollars P = principal amount invested or loaned r = annual interest rate (in decimal form) t = time (must be in years) To Determine the Future Amount (A): A=P+I or A = P(1 + rt) The future amount is the initial amount invested or loaned (the principal) plus the accrued interest! "Time MUST be in YEARS* Unit of time Conversion to Years x months x / 12 x weeks 52 x days x / 365 Watch this vi Question 4 (5 points) Zahara has invested $1500 of her savings into a simple interest account that pays 7% interest per year. She does this for a total of 45 months. Show all work and remember units in your final answer. a) Determine the amount of interest she will earn. (3 marks) b) Determine the amount of her investment after 45 months. (2 marks)