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QUESTION 4 Exploring Simple Interest In the case of simple interest, the interest payment is...

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QUESTION 4 Exploring Simple Interest In the case of simple interest, the interest payment is exactly the same each period. If you deposit $100 in an account that earns 7% simple interest annually, this account will grow by $70 each year. The amount of interest does not increase or decrease, but stays at $70. So the future value of the account is the starting value plus all of the $70 interest payments. More generally, the formula is: FV = PV + (PV*j * n) where i is a decimal (for example 7% is 0.07) Now you practice... What is the future value of an account that begins with $1,999 and pays 5% annually for 6 years

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