Find the future value of 1200 deposited at 7 for 4 years if

Find the future value of $1200 deposited at 7% for 4 years if the account pays simple interest, and the account pays interest compounded annually The future value of an account that pays simple interest is $. (Type an integer or decimal rounded to the nearest cent as needed) The future value of an account that pays interest compounded annually is $. (Type an integer or decimal rounded to the nearest cent as needed.)

Solution

FOR SIMPLE INTEREST

SI = PRT/100

SI = 1200*7*4/100

SI = 336

FUTURE VALUE = 336+1200 = 1536

CI

FUTURE VALUE = P(1+R%)^n

= 1200(1+0.07)^4

=1572.955