For problems 7 through 13 assume that an investor deposits 1

For problems 7 through 13, assume that an investor deposits $1000 into a bank account on January 1, 2004. Find the accumulated value of this account: On January 1, 2007 based on 9.2% simple discount

Solution

Simple interest=P*R*T/100

=1000*9.2*3/100 as 3 years have passed between 2004 and 2007

=276$

Amount accumulated=1000+276=1276$